CNOOC withdrew its $18.5 million bid on Unocal yesterday. In an earlier article, I wrote that I didn't think US Govt will allow Unocal to be purchased by the Chinese Govt. That happened, more or less. CNOOC, withdrawing its bid, has cited growing political backlash at Capitol Hill prompted its decision.
This is not the last we will hear from the Chinese corporations with the backing of the Chinese Government. China will succeed sooner than later. CNOOC itself has signaled that it will continue to look for acquisitions in foreign countries in the near future. US Politicians will have to come to terms with the growing economic power that China is and will have to let China play on the same field that they believe in. Chinese oil companies already own interests in countries like Iran, Myanmar and Sudan, places where the Western oil companies have not made inroads. The future is likely to see an intense tussle for oil supplies in the Asia-Pacific and Australian regions. I think the issue of US having the face the consequences of its support of the Capitalist model has been skirted now; Soon, Capitol Hill will have to face it head-on.