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I live just outside of Smithfield, and let me tell you, many of us local folk are appalled. Smithfield Foods has been part of our landscape for a long, long time.
Given the track record for the Chinese on dog food, children's toys, and fruit drinks, I think my days of buying the Smithfield brand are over.
It is alarming, disheartening, and disappointing, and most worrisome, it's just one more indicator that the sun has set on America's hegemoney.
Sad story to say the least, however more and more of this type of buyout of American companies will be happening. I remember several years ago how many farms in Iowa & Nebr were being bought up by the Chinese for corporate owned. Also forested areas of the Pacific Northwest are now under ownership as well. Congress can’t figure out what to have for lunch much less create legislation and bills to protect our nation from foreign ownership, h3ll Congress can’t even stop our own corporations from moving their ownership offshore to avoid paying taxes….. I guess that’s why there are so many lobbyists in Washington to help with these issues for the corporations.
Be sure to watch the PBS broadcast all the way to the end. It looks as if the Americans were shocked when they learned the chinese government was behind the deal. Really? If you live in the Bay Area, it comes as no surprise.
and they laugh that we shouldn't fear Putin:
"Folks who were in favor of accelerating liquefied natural gas exports anyway have seized upon the Ukraine crisis as yet another argument for why we should be doing it," says Edward Chow, a former Chevron executive and an expert on international energy markets. "But it won't directly affect Europe." Most US exports, he explains, are slated for Asia, where natural gas fetches a much higher price than it does in Europe.
It really does not bode well for future generations of Americans. How can we sit back and let this happen? Because as long as somebody can be bought in government we will never recover.
You all do know that the Chinese want smithfield for its pig raising methods and technology? They have no intention of moving its production out of the US. The Chinese want what they see as our clean and advance food management methods. They want the clean food we have here for their people too. I don't see it as the Chinese taking over anything; it's really about them learning our ways to better their people's lives. The Smithfield production will get huge exporting to China.
You all do know that the Chinese want smithfield for its pig raising methods and technology? They have no intention of moving its production out of the US. The Chinese want what they see as our clean and advance food management methods. They want the clean food we have here for their people too. I don't see it as the Chinese taking over anything; it's really about them learning our ways to better their people's lives. The Smithfield production will get huge exporting to China.
How do you know this ? Is there a link to support what you are saying. I am truly interested.
Given past practices of the Chinese and processing, I will no longer buy Smithfield products. Don't forget the tainted baby's milk.
How do you know this ? Is there a link to support what you are saying. I am truly interested.
Given past practices of the Chinese and processing, I will no longer buy Smithfield products. Don't forget the tainted baby's milk.
It's simple common business sense that when someone with money sees a good thing, they will want to obtain it.
There have been plenty of news and analysis about alleged hacking incidents and industrial espionage from China with modernization efforts usually being the agreed primary motivator. But if you want some specific analysis, a brief search brings up some good links showing that the Chinese government knows that they have a lot of people to feed and they are putting money into making it happen:
These alone clearly establish the Chinese government's motivation, even though it's pretty obvious without them. Of course they wouldn't announce a step-by-step walkthrough of all of the different ways that they plan to do it.
On a similar note, it would be fair to question the relationship between the melamine-tainted milk scandal and future management at Smithfield. Considering that the Chinese management in the scandal are under such public suspicion and scrutiny such that at least 1 manager was lynched/murdered, 2 executed, multiple others jailed, and the rest socially disgraced, I think it is unlikely that any of them would make it into Smithfield. This is on top of promises to keep Smithfield facilities and management in place. Why would the Chinese government allow failures to ruin the technology that they want and the food supply that they need?
I sense some resentment that over a Chinese company buying Smithfield Foods. However nobody seems to clearly point out is that the Smithfield (SFD.N) shareholders did not have to approve of such a sale.
Not that it necessarily matters since the American executives were pretty set on selling the company abroad: The two other potential buyers were Charoen Pokphand Foods of Thailand and JBS SA of Brazil before Shuanghui stepped in with their very large bid.
I do wonder if having foreign owners reduces the corporate taxes to be paid under current law.
Thanks for the links. I personally dont understand all the grand-standing and paranoia. Sure the Chinese are wresting with all sort of oversight issues in their food supply, medication sources, etc etc etc. That's a native Chinese problem and a world problem only because the Chinese export so much. But in this case, the Chinese may own the company, but like Volvo, they have no intention of killing the goose by moving it into China. They will expand it in the US by exporting a lot of Smithfield product into China. If anything, there will be more local employment, and the net profit of the company will rise, benefitting the shareholders. It's still going to be traded on the NY exchange....
I just hope that the Chinese will be open to better and more humane practices in raising sows and piglets. The current Smithfield practices are immensely cruel and grotesque (see many videos on this subject). You should boycott Smithfield for its cruel practices long before you worry about any Chinese ownership if you love animals and care about them.
I do wonder if having foreign owners reduces the corporate taxes to be paid under current law.
For business conducted in the U.S., it does not, but it may for business conducted in other countries depending on the tax laws of the nation where the company is headquartered.
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