Evan Bayh: “great concern has been raised by this Senator, and others, in recent weeks regarding efforts by the China National…”

“great concern has been raised by this Senator, and others, in recent weeks regarding efforts by the China National Offshore Oil Corporation, known as CNOOC, to acquire the prominent U.S. oil company, Unocal, based in California. The Unocal Board has endorsed a takeover bid by Chevron, also a California company, which its shareholders will vote on in the coming days. This Senate needs to be aware, however, that CNOOC, which is essentially an arm of the Chinese government, may well be planning to raise its bid to acquire Unocal, and what greatly disturbs this Senator are reports in the press that they are waiting for Congress to adjourn for August before making a renewed bid--a move that directly challenges the Congress and the authority granted to it by the Constitution to regulate foreign commerce. Moreover, this renewed bid heightens my concerns about the heavily subsidized nature of CNOOC's financing. When foreign firms compete for assets in the U.S., it is essential that they do so on a level playing field with U.S. companies. Government subsidies tilt this playing field, and in doing so distort competition. This harms U.S. workers, companies and investors. Congress recently approved an amendment to the Energy Policy Act that requires the Administration to study these issues and report to Congress and the President. This amendment reflects Congress' strong reservations about the PRC's role in financing the acquisition of U.S.…”