The Untouchables

There are some investment areas that are still too sensitive for the Chinese to touch. The first and the foremost of course is oil, the blood of American economy and its most vulnerable soft belly. When CNOOC showed interest in Unocal, it generated an overwhelming opposition from American politicians. While this time when Huawei wants to increase its stake in 3COM, overprotectionists see it as a threat to American immune system of the national defense. Once again, Bain and Huawei realizes that they'd better withdraw than be rejected after 8 congressmen acted determinedly to block the deal. CFIUS's prolonged reviewing process has discourage a number of potential investments from China and probably will continue to do so. Though wise members of the Congress won't necessarily agree with their anti-China colleagues in such deals, they don't have any incentive to support them either. Due to the fear of potential political repercussion, many free traders and free market believers actually decided to shut up. However,when it comes to the saving of American financial problems, other than some rhetoric nobody seriously moves to deter the sovereign fund or other foreign investments in financial equity. If we learned anything from these, it will be that under current political economic circumstances in the U.S., China should and could only invest in the areas in which they are invited or desired, not what they believe to be most beneficial to their own interest.