Last week the U.S. Senate held hearings to question the CEO of meat-producer Smithfield Farms, about the proposed $4.7 billion sale of the Virginia-based company to Shuanghui International, China’s largest pork producer. The sale is under review by the Committee on Foreign Investment in the United States or CFIUS, an interagency panel headed by the U.S. Treasury that reviews foreign investments for national security threats.
Samuel Kleiner, a student at Yale Law School, argues in his Viewpoint on the subject that, “the Smithfield Farms deal threatens to undo a lot of good will between the U.S. and China on Foreign Direct Investment issues precisely because there is no plausible national security issue in the deal.”
“At stake is the largest-ever Chinese investment in an American corporation and the future China’s perception that it has fair access to the U.S. market,” writes Kleiner.
We asked contributors to the ChinaFile Conversation to comment on the deal, the CFIUS review, the involvement of Congress, and what deal augurs for the future of U.S.-China trade.