Friday, 21 September 2012

Why the government should block CNOOC takeover of MEXEN

Senkaku -Diaoyu Islands
image from Wiki
It occurred to me that this story illustrates exactly why.
 I had a date with Mr. Insomnia. I gave up trying to sleep and turned on CBC radio. They were featuring ABC at 4 a.m. No, not THAT ABC, but Radio Australia. They have a show that features an Asia Pacific focus. I was shocked to hear about the protests. In CHINA. Protests. This isn't normally allowed. Remember Tiananmen Square?

What is it about?
The dispute is over the Diaoyu Islands (the name according to China) – called the Senkaku Islands by Japan. Yes, in this day and age there are still human beings fighting over land. How medieval is this?! The islands were owned by a Japanese business man and he has sold them to Japan. Japan controlled the islands from 1895 until they surrendered after WW II. The US gave control back to Japan in 1971. The islands have been deserted after a failed plant was abandoned in the 1900s (photo Wiki).

Workers at a bonito fisheries factory
on Uotsurishima in the Senkaku Islands ~1910.
The protests are shocking. All the more amazing because there are many Japanese factories and stores in China, and many Japanese who live and work there. Stores are boarded up and company names covered. The government is permitting the protests. The Australian broadcast team were told they had some trepidation when the police came towards them, but they were guiding them to a better vantage point to view the protest. How weird is this?

I did some further reading and found this article:

In its fight with Japan, China unleashes the mob

By Patrick Brown: He tells us the the Chinese government has encouraged demonstrations that included hurling eggs, water bottles, stones. The sound clips are frightening.
While the 'sticks and stones' axiom applies, the banners and slogans included obscenities towards the Japanese, including calls to exterminate the Japanese.

You'd think they'd realize they realize that this is politics. Estimates are the trade between the two countries amounts to 260 BILLION Euros. Japan has been hit by their natural and human-made disasters, and China, too, has faced the global meltdown of 2008.

Why would China care?
Simple. In 1968 potential oil and gas reserves were thought to be found around these islands.

What is the big deal to Canada?
What is always missing, in our CBC broadcasts, is the impact on Canada. This type of behaviour indicates a country willing to do anything for profit, fuel and power. Anything includes hacking into computer systems.
Cyber attacks have begun, too: Chinese cyber attacks hit Japan over islands dispute
Sep 19, 2012 Websites altered to show messages proclaiming Chinese sovereignty over the Diaoyu islands.
With NEXEN and the CNOOC takeover, I fear what will happen in Canada. With the history of Chinese corruption, contaminated and dangerous products, and lack of respect for the human rights and the environment, I wonder what havoc will ensue in Canada. NEXEN claims responsible development. But, according to the Globe & Mail, the government is worried about it all:
Ottawa casts wary eye on Chinese telecom giant
Newly released records show federal officials proposing ways to mitigate risks to computer systems from foreign telecom company
Nexen shareholders vote in favour of $15.1-billion takeover offer
CTV News‎ - 11:00 a.m. Thursday, Sept. 20/2012
Shareholders of Nexen Inc. (TSX:NXY) have voted to approve a proposed Chinese takeover of the company by China National Offshore Oil. 
Canadians oppose CNOOC bid for Nexen, poll finds
Reuters Canada‎ 
OTTAWA (Reuters) - Nearly seven out of 10 Canadians oppose approval of the $15.1 billion bid by China's CNOOC Ltd for Canada's Nexen Inc 

Sydney Morning Herald
  1. Ottawa's Chinese community protests island dispute with Japan
    Ottawa Citizen‎ - 10 hours ago
    Yang Yang was co-organizer of Thursday's peaceful protest by a coalition of 13 Ottawa Chinese community groups protestedpeacefully ...


Red said...

Amazing how disputes from a very long time ago are still carried on. Can't they give it a rest?

W.C.Camp said...

This is another 'grab' and trumped up issue by the Chinese, but I doubt worth losing sleep over in North America. Canada like the U.S. will always need to be vigilant against cyber attacks and their interests in foreign countries, but the Chinese are not anxious for a 'face to face' confrontation here. Remember, the Japanese were very cruel when they invaded China and those feelings of mutual hatred run deep. W.C.C.