China acquires Smithfield Foods

smithfieldChinese companies are collaborating with their government in trying to acquire assets from all around the world. This is a trend that has been on for quite some time now. They have been buying things like tech companies, international banks and also seem to be investing a lot on real estate. However last week it was announced that a meat producer from China is planning to take over Smithfield Foods a Virginia based food processing company has taken everyone by surprise. It is considered to be the world’s largest producer processed pork; they are famous for their widely loved range of hotdogs , ham and bacon under the household names like farmland and Armour.

U.S economists are kind of worried over this trend, as they worry whether this would give China an additional leverage on the U.S economy. Many also see it as a threat, as China also has the biggest military force in the world. At the same time, state and local chambers of commerce see it as a welcome change as well as suggest that there would be a boost in the local job markets. There are also other economists, who see it a much brighter light and say that the low of investments should not be frowned upon and rather be seen as an opportunity for good business and employment.

Thilo Hanneman, who analyses Chinese investment for Rhodiun, which is an economic research group, dismisses all the negative concerns and with quite an impressive assurance point out that it would be beneficial in the longer run because of an increase in tax revenue as well and suggest that the primary reason why mayors and governors go to China for endorsements is to promote these kinds of investments. However amidst of all the speculation and rumours, The Smithfield acquisition has not been confirmed yet, as there are strict rules and regulations to be fulfilled and also it is mandatory for to get the approval of the committee on foreign Investment.

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