Cnooc Ltd. abandoned an $18.5 billion takeover of Unocal Corp. after the bid, the largest attempted acquisition by a Chinese company, ran into political opposition from U.S. lawmakers. The decision leaves Chevron Corp. as the sole bidder for the U.S. oil and gas producer.
So, when Communists offer to pay you for something that they could just nationalize is it wise to refuse the cash? Granted at this stage it wouldn’t be a simple matter for the ChiComs to nationalize Unocal resources, but a lot of the resources are in their “sphere of influence” and they certainly could exert that influence to gain control of those assets. Of course, we don’t want to sell them the rope to hang us, but if there’s a real likelihood they could take sovereign control of this oil, refusing to sell it to them seems a hollow victory.