Chinese Investments in the US Augment Fears
6-22: Chinese companies have begun to acquire US companies, from the acquisition of IBM’s PC division by Lenovo Group in December to a possible bid for Unocal Corp. and a recent offer for Maytag Corp.
At this point, Chinese investments in the US market are relatively insignificant, but if current acquisition trends continue in combination with growing US domestic tensions over trade and China’s growing superpower status, a backslash, similar to the one against Japan in the 1980s, could result.
The business sector is not overly worried. Foreign companies often invest in US companies—in the same way that American companies invest in China. Last week, Bank of America Corp. announced that it was investing $3 billion for a 9% stake in China Construction Bank, one of China's largest banks.
But some fear that Chinese acquisitions of US high-tech firms represent a long term security risk. Several representatives, including Richard W. Pombo, Duncan Hunter, and C. Richard D'Amato have spoken out on the issue. They found Chinese investment in the US troubling given the potential for future conflicts with the growing Asian power. They fear Chinese companies will acquire US companies and then “loot them” as they move that technology and know-how to China over time.
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In a Post-Iraq World, Poll finds US Allies Prefer Collaborating with China before the US
6-24: Despite the US’s recent efforts to smooth over past tensions, discontentment over the Iraq war continues to plague international sentiments toward the US. In fact in almost every poll, China faired more favorably with US allies than the US.
Respondents noted favorable views in the UK, US, 55%; China 65%; in France, US, 43%; China, 68%; with similar results in Spain and the Netherlands. Canada saw roughly equal views towards US and China. In Pakistan, Turkey, and Jordan only one-fifth of respondents viewed the US favorably. Only in India and Poland did polls find more favorable attitudes toward the US.
Where the US has made efforts, such as in Indonesia with Tsunami relief, polls have turned in the US’s favor, but on the whole, the Iraq War continues to hold a forceful presence in the memories of the international community.
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