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Carolyn Kilpatrick (MI-13)

Bill to Block sale of UNOCAL to Chinese Oil Company (6/30/05)

Summary
U.S.-China economic ties have expanded over the past several years. Trade between the two countries rose from $5 billion in 1980 to $231 billion in 2004. Although China is the third largest U.S. trading partner, it fails to extend similar benefits to America. The existing trade deficit, lax protection of U.S. intellectual property rights, widespread trade barriers, and China’s pegged currency policy are all issues that must be addressed.

CNOOC, a Chinese oil company, made a $18.5 billion bid to purchase Unocal Corporation in June 2005. Concerns about the economy and national security led to opposition of the sale.

What does the bill do?
This amendment prohibits the use of funds from being made available to recommend approval of the sale of Unocal Corporation to CNOOC Ltd. of China.

Why is this bill needed?
The U.S.-China trade imbalance continues to rise. American companies are unable to compensate employees fairly and provide quality products at lower costs than cheaper Chinese imports. U.S. manufacturing jobs are being lost because of unfair Chinese trade practices.

America needs to achieve energy independence. Freedom from foreign energy sources will help reduce energy costs and create jobs for America’s families. A Chinese state-owned energy company that controlled critical U.S. energy infrastructure and production capacity could take action that would threaten to impair the national security of the United States.

This bill helps us address these issues. By adopting this policy, Congress demonstrated its commitment to America’s families and its future.