China Is Buying Two US Oil Fields

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Tall City

Chinese investors are looking for businesses to buy that aren’t under the strict regulations imposed on them by the Chinese communist government.

A Chinese holding company Yantai Xinchao Industry Co. Ltd. and another company are buying up two giant oil fields in Texas for $1.3 billion. The Chinese are interested in US energy resources along with tech companies, US infrastructure, landmarks and so on.

The companies they are purchasing are Tall City Exploration LLC and Plymouth Petroleum LLC. Yantai says they have permission to buy them from the Committee on Foreign Investment in the United States.

As an aside, all wealthy Chinese are members of the Chinese Communist Party.

In May, the company announced plans to pay about 2.2 billion yuan for another oilfield in Crosby, Texas, with proven reserves of about 25 million barrels.

The Chinese are moving into the oil and gas sector which might not be such a good omen for Obama’s climate change plans for them.

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.

In 2011, Reuters  reported that China was interested in investment in U.S. infrastructure, including rail and transportation networks. There was also a fear that China would demand payment of our enormous debt to them in land.

In 2012, they were buying up ports, toll ways, real estate, energy companies at a record pace. They bought up prime real estate in New York City, Los Angeles and San Francisco. Four of the most populous and productive states—California, Virginia, Texas and New York—have been their primary focus. Of these investments, Chinese companies were responsible for 73% while the remaining 27% was done directly by the government.

China’s state-backed Tsinghua Holdings plans to buy a 15 percent stake in U.S. data storage company Western Digital, a deal that could draw regulatory scrutiny amid increased national security concerns.

Tsinghua-owned Unisplendour will invest $3.78 billion in Western Digital to boost its technology portfolio and get the right to nominate one representative to the U.S. company’s board, the companies said in September.

Reuters reported in July that Tsinghua was looking to buy Micron Technology, but the deal has not yet materialized amid national security concerns.

Sen. Charles Schumer (D., N.Y.) in August called for a committee that reviews foreign acquisitions of American businesses to block Tsinghua Unigroup Ltd.’s pursuit of Micron Technology Inc. If completed, a deal would be the largest Chinese acquisition of an American company.

“I am deeply concerned with the national security implications of allowing China to gain market control over the production of components tied to modern U.S. defense systems, potentially including Micron’s memory chips,” Mr. Schumer wrote in a letter to Treasury Secretary Jack Lew, who leads the committee.

Tsinghua is also in the process of buying a 51 percent stake in Hewlett-Packard’s China-based data-networking business.

During a September 28 interview, AMERICAN FREE PRESS asked Frederick Els, editor of the web-based Mining magazine, about China’s buying spree in America.

China still controls a monopoly on Rare Earth Elements (REEs) that are critical to a number of advanced weapons systems, mobile devices and emerging green technologies.

“China consumes 60% of the world’s iron ore and 40% of the copper,” said Els. “They’re buying up the people who are supplying them.”

Is this a good idea? We’re selling precious energy resources to our enemies.

Still, we keep borrowing from them and selling to them.

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1 COMMENT

  1. Why are we selling oil fields to anyone out side the United States? ?? Let them buy the oil and let China lease the land why are they selling it to them so we can kick there asses and take it back.

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