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Beattie Reports on US China Econ


Q&A Hufbauer & Beattie / US China Econ / Shuanghui (Shang-we) International Holdings, the largest shareholder in China's largest meat processor, has proposed buying Virginia-based Smithfield Foods, one of America's largest pork producers. It would represent China's biggest acquisition of a U.S. company at $4.7-billion and more than $7 billion when debt is factored. The deal must be approved by U.S. regulators, primarily the Committee on Foreign Investment in the United States, as well as by Smithfield shareholders. Gary Hufbauer of the Washington-based Peterson Institute for International Economics says China will benefit from the deal because it will mean a better return on investment for Shuanghui rather than holding on to low-interest Treasury notes and improving safety standards for China's food industry. Hufbauer was asked by VOA's Victor Beattie if he expects the agreement to pass the scrutiny of U.S. regulators.

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