Yantai Xinchao and a second Chinese firm will shell out $1.3 billion to purchase oil fields owned by two Texas companies. China has been gobbling up America by investing billions of dollars here. Since 2000, they have been rapidly investing their way to ownership of many industries on the U.S. landscape.
Is this Bye, Bye Texas Oil fields?
The oil fields are owned by Tall City Exploration and Plymouth Petroleum. They border Howard and Borden counties. They are in what’s known as the Texas Permian Basin, and is only part of a LARGER deal with Chinese firms. The Permian Basin is the oldest oil field in Texas. Why do they want it? Shale extraction. And their companies are shaking their investment trees to make it work in a rocky Chinese stock market.
CNN money reported,
Yantai Xinchao shares were suspended from trading last Friday to allow for the asset restructuring and oil field purchase. The company expects shares to be halted for about one month, and plans to release periodic updates on the restructuring, according to another stock exchange filing.
Snapping Up America, Billions of dollars at a time
The following map from the Rhodium Group, which monitors Chinese holdings in the United States, shows their investments. Keep in mind, China is a COMMUNIST government and tensions have been high between the U.S. and the Communist regime. The investment is conducted by SME (small and medium sized enterprises) companies in China.
Their oil field investment has already been approved by the United States Committee on Foreign Investment.
What does it mean?
Chinese investments are “creating new jobs, and bringing in much needed work to America.” It is also making lots of friends in Congress.
“If you’ve got 3,000 to 4,000 of your people working for the Chinese, that’s feeding a lot of your constituents.” Stephen A Orlins, President of the National Committee on U.S.-China Relations.
The iconic Waldorf Astoria Hotel in downtown Manhattan – owned by a Chinese Company from a $2 Billion deal. Chinese investors are snagging other such “trophy properties” across the country in upscale areas.
Energy such as the oil fields in Texas, wind farms, telecommunications, high tech firms, even American infrastructure across the country are now under Chinese ownership. The Federal government believes that opening up America for foreign investment is a good thing and will help the struggling economies of both countries.
The National Security Issue
Chinese cyber hacking has increased. The investment into American companies allows them access to areas they once did not have.
From a U.S. Government document on Chinese investments and National security:
…The greatest potential impact on the United States could come in the form of Chinese investments in U.S. telecommunications companies. The vast global telecommunications and technology infrastructures owned or operated by these companies include undersea, terrestrial, wireless, and space-based networks. These investments would increase China’s leverage in the U.S. marketplace and beyond (even if indirectly through joint ventures and third parties) and could eventually provide China access to or control of vital U.S. and allied information, networks, or segments of critical supply chains.
Another key concern regarding the security of U.S. communication and computer networks relates to the reliability of electronics components found within the network hardware. National security vulnerabilities attributable to having critical infrastructure components manufactured, implemented, operated, or maintained by foreign actors are increasing at an escalated rate. Within government, steps can be taken to safeguard sensitive areas but at a substantially increased cost in both resources and lost opportunities to innovate. Trusted hardware and software produced domestically may cost more than commoditized products produced abroad. The government may also find that it will have to curb the infusion of ever-newer communications technologies into some especially sensitive areas in favor of retaining secure legacy technology models…
Let’s face it- things made in China are not reliable. Then you have them rummaging around in systems that could cause a national security breach at any time.
Is having Chinese ownership of American companies helpful or harmful? We’re thinking it’s got a severely dangerous side, jobs or no jobs.
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