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An unfair fuss over 'security?'

(China Daily)
Updated: 2010-09-03 17:10

China's investments in the United States have always been a sensitive issue - the failed bid by China National Offshore Oil Corp (CNOOC) to acquire Unocal, the petroleum explorer owned by the Chevron Corp at a very high price, often comes to mind. Claims that the deals could affect US national security is often a poor excuse by US congressmen. It's often a veiled attempt to hide their discrimination and prejudice against Chinese investors.

Recently US politicians have stirred up a big fuss over the business activities of two Chinese companies. China's Anshan Iron and Steel group plans to invest $175 million in a new steel plant in Mississippi with the US Steel Development Company, while Huawei is bidding to provide equipment for US wireless operator Sprint Nextel.

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Although the amount of funds involved is trivial compared with the total volume of trade between the two nations, the two projects that have attracted the attention of US politicians should be taken seriously.

Seen from the broader perspective, the China-US relationship is one of the most important bilateral relationships in the 21st century for the Asia-Pacific region as well as for the rest of the world.

It is my hope that this important bilateral relationship is not repeatedly marred by US lawmakers. The US government should realize that such discrimination against Chinese companies will only trigger antagonism from the business community in China, hurting the foundation for a healthy development of bilateral economic and trade relations.

For China, the actions by US politicians against Chinese companies also spread the fear of the "China threat", which will be detrimental to the Chinese image.

For Chinese companies, the smearing campaign is also extremely unfair.

If the CNOOC's bid for Unocal more or less affected America's energy security, then the separate Anshan Iron and Steel Group and Huawei projects will apparently not affect US national security. This idea that the US politicians are promoting is setting a very bad precedent. Try to imagine, what other Chinese investment projects would not be vilified in the US?

US congressmen may have their own agenda. First, they can score political points by bashing China; second, they can protect the interest of some US industries and companies.

China needs to deal with the US lawmakers to show them that the business activities of Chinese companies are legitimate. China also must win the US government's understanding. If the US government cannot restrain the behavior of its politicians, it should at least clarify the facts to the American public to avoid an escalation of rhetoric. The US government should not be manipulated by its politicians if they really want to secure business opportunities for US companies.

Excerpts of an article published in the Economic Information Daily on Aug 25.