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Why are we letting China buy American Companies?
Howard Richman, 12/17/2013

Tradereform.org notes that the New York Post featured an excellent commentary by Diane Francis on December 15 entitled Why are we letting China buy American Companies?. It's about a Chinese company's purchase of U.S. pork producer Smithfield Foods of Virginia. Francis predicts the following:

Smithfield has become the branch plant of its new proprietor — a holding company called Shuanghai International Holdings Limited, the biggest meat processor in China. But the ultimate beneficial owner is the Chinese government, and Shuanghai answers to the politics, policies and edicts of Beijing. This is the nature of “China Inc.”

The Smithfield buyout is a great loss because the company has become a huge exporter, to Japan and elsewhere, and has developed, with taxpayer assistance, systems and technologies that are best in class....

The damage includes the fact that Smithfield’s technology, research and development and patents will be transferred to the Chinese parent company. Smithfield will be hollowed out and the head office will be moved to China. Talent will leave.

Francis' concern about the loss of American technology is valid and important. And there is another important concern. Financial flows of capital into the United States, such as this, do not benefit the United States in any way. They drive up the dollar versus the yuan in world markets which causes American producers to be less competitive.

It would be very different if a Chinese company were building a new factory in the United States. Then they would be bringing something to the table that would benefit the American economy.

Why we let the Chinese steal our technology and make our products less competitive is beyond me. We are selling out our future for a bit of extra consumption today.

My best advice to young people is that they start studying the Chinese language so that they will be able to speak to their bosses. That's the only future that Washington appears to be planning for them.

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