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Economic imperialists undermine free market principles

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Wang Xiangwei

As CNOOC's US$18.5 billion bid for the US-owned oil company Unocal reaches a crucial stage, the political odds are stacking up against what should have been a normal business deal.

US congressional opposition to the bid, organised and fanned by the highly paid lobbyists of rival bidder Chevron, is escalating into a storm of anti-China fervour.

CNOOC's bid looks increasingly fragile, no matter whether it further raises the purchasing price or offers more financial incentives to Unocal shareholders.

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CNOOC has become a pawn in the hands of some US congressmen and politicians seeking to heighten fears of a China threat. Washington politics have replaced free market principles as the key factor driving the debate over CNOOC's bid.

This is a pity. If CNOOC's bid fails because of the political factors, the ramifications will be far reaching.

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This would be a hard blow to the internationalisation efforts by the mainland's best-run companies seeking business opportunities in the US and other western nations. Home appliances giant Haier's quest to take over Maytag is also in doubt.

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