A Clear Look at China's SOEs

The past decade has seen a global wave of investments abroad by China's state-owned enterprises (SOEs), particularly in the resource sectors.  These investments have caused much controversy in Western democracies, perhaps most notably with the failed attempt by the Chinese National Offshore Oil Corporation (CNOOC) to purchase the U.S. energy firm Unocal in 2005.  In 2012, Canada was ground zero for China's latest attempt to use its SOEs to purchase major foreign energy assets with the proposed CNOOC takeover of Nexen, a controversial deal which was ultimately approved by the Canadian and U.S. governments and completed earlier this year.  During these Chinese SOE takeover attempts, we generally see a pro-China propaganda war playing itself out in various mainstream media outlets in an attempt (successful in the case of CNOOC-Nexen) to sway public and regulatory opinion.  But in order to construct rational policy positions, we need to look more closely as to who...(Read Full Post)