The Chinese government wants a lot more pork, the edible kind, and they came to the Commonwealth of Virginia to purchase the world’s leading producer of pork products. A deal was inked this week valued at a little over $7,000,000,000 for Virginia’s Smithfield Foods from Smithfield, Virginia. The buyer is Shuanghui International Holdings Limited.
According to a Wall Street Journal story citing a Congressional study, more than 90% of Chinese investments in the United States are done by companies owned by the Chinese Communist Party. I do not know much about Shuanghui International. I would bet it will be just about impossible to figure how much Chinese state-owned concerns control the company.
What’s the big deal, you ask? Free competition for starters. Unfair trade advantages. While likely not an issue in this transaction, national security concerns. Focus not on the Virginia transaction, at least not right now, but on other businesses owned by Shuanghui International in other countries.
Millions died in China’s Cultural Revolution. It is an inconvenient fact the party planners would soon like to forget. Glad to see they are taking no chances and making certain it does not happen again. And if there is a silver lining in all of this, maybe we can teach the Chinese how to be more responsible stewards of the environment:
As for Smithfield, its workers and shareholders, I hope it goes well. It is a great company with deep Virginia roots.