“National Security” Protectionism

American protectionists blocked the Dubai Ports deal because of “National Security” concerns.   They also blocked the sale of Unocal to CNOOC on similar grounds.  So please remember that as you read this article about China’s retaliation in the form of legislation which will require that acquisitions in their country pass the “national security” test.  Turnabout is fair play as they say.  I know who started it, but where does it stop?  It’s likely that US Congressional “leaders” will end up using this as a further justification for their pressure on the Yuan and an opening of Chinese markets to US products.  And that’s the point - when protectionism begins there is retaliation.  It happened with the onset of Smoot-Hawley and it’s happening again.  If we don’t watch out, the results will be the same.