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There’s growing concern over CNOOC’s bid for Unocal. The problem is that CNOOC is 70%-owned by the Chinese government. ChevronTexaco is interested in Unocal as well, but they’ve only bid $16 billion compared with CNOOC’s $18.5 billion. Unocal’s board has recommended Chevron’s offer, but now CNOOC is fine-tuning their bid.

The House Armed Services Committee held hearings today on CNOOC’s offer. Some members of Congress think this is a national security. The House overwhelmingly passed a resolution saying that this deal “may threaten national security.”

I think this is greatly overstated. China is an oil importer, just like us. They want low prices too. Jerry Taylor, of the Cato Institute, testified that this isn’t a national security issue.

Posted by edelfenbein at July 13, 2005 2:05 PM