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[quote user="Murphy Siding"][quote user="schlimm"]That is pure speculation and seems to be largely a rationalization for your distaste for a US corporation being bought by a Chinese one.[/quote]      I think you're being too charitable.  That is pure hallucination, brought on by a need to never be wrong. If Chinese companies want to buy American companies, just so they can sell the goods at a lower profit margin overseas, then they certainly have a lot to learn about capitalism.   I think they're smarter than that.[/quote] The Chinese may be applying capitalist models to some of their commerce, but they are a communist system.  So I think it is risky (and naive) to conclude that they will approach the Smithfield acquisition purely as an investment in U.S. style capitalistic industry.  They have bigger fish to fry in China just maintaining social stability their astounding population and economic growth.  With their wealth and growth, they could run Smithfield as a hobby if they wanted to.  If you read the many articles on this acquisition, you will see that the number one objective is to increase the pork supply to China.  The number two objective is to apply the Smithfield production system in China.  They have gotten to where they are today by winning the competition with U.S. industry, not by investing in it. But, in any case, if this deal follows the direction I am predicting, everybody still comes out a winner.  The Chinese people get the pork they want.  Shanghui gets an improved image along with better domestic production technology.  Smithfield gets to stay in business and probably expand exponentially.  The railroads get a lot of new business.  The pork production supply chain prospers with the increased production.  And new jobs will be created as other U.S. pork producers increase production to meet increased U.S. demand to make up for the shift of Smithfield supply to China.
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