July 1, 2005: House Urges Bush to Block Unocal Takeover by Chinese Oil Company

The US House of Representatives approves House Resolution 344 (H.Res.344) with a 398 to 15 vote urging President Bush to block the proposed takeover of Unocal Oil by the Chinese National Overseas Oil Company (CNOOC Ltd) on the grounds of national security. CNOOC has bid $18.5 billion for Unocal against a $16.5 billion bid by Chevron. In a written statement, China’s foreign ministry says, “CNOOC’s bid to take over the US Unocal company is a normal commercial activity between enterprises and should not fall victim to political interference.” [Washington Post, 7/4/2005] Congressman Duncan Hunter (R-CA) warns that the “Chinese would also be advantaged by such a transaction because it would extend their military and economic reach in such a way that could potentially impact… [US] involvement in East Asia.” [Office of Representatives Duncan Hunter, 7/1/2005]