International Law

Follow Up to Huiyuan & the US Election

By Stan

Just a quick explanatory note to my earlier post on the Coke-Huiyuan deal, protectionism, and the US election. Seem to be a lot of links floating around out there to that post, and for some reason (Will Lewis, I’m looking in your direction and shaking my fist in a sardonic, Jon Stewart-esque mock anger gesture), I am being touted as the guy who thinks that the announced acquisition will dampen the enthusiasm in the US for China bashing.

Not exactly. I do think that the U.S. has very little credibility when it comes to criticizing China about M&A protectionism in the wake of UNOCAL and 3COM, not to mention deals involving other countries like the Dubai Ports fiasco. However, the risk of being labeled a hypocrite has never stopped a politician before, and it certainly won’t now.

No, I fully expect that if Coke runs into trouble with the AML, the entire Georgia Congressional delegation, among others, will be up in arms about how awful the Chinese are.

As far as the presidential election is concerned, the only reason why we could miss criticism from McCain and Obama is that the AML review might occur too late in the election cycle. With less than 60 days left to go, I think that everything will be over in the US before the government here has time to do anything. Otherwise, I would have fully expected both Obama and McCain to bash China repeatedly over the head about this issue. Plays well in Ohio and a lot of other swing states.

OK, clarification over.

Full post as published by China Hearsay on September 08, 2008 (boomark / email).