There is a fundamental difference between Shell and PetroChina. The latter is effectively an arm of the communist Chinese Government. Shell's actions will always be bound by the profit motive. The Chinese Government's action not so.
We saw with the Chimalco bid for Rio, concern that the Chinese Government would force Rio to sell iron ore to Chinese companies at below market prices. This reduces royalties and Australian income tax paid as makes us all poorer as Australians. Also, the Chinese Government has been very vocal about BHP and RIO ripping off Chinese companies by charging too much for iron ore. China has a long way to go to accept market based pricing. You don't see the US complaining because Toyota cars are too expensive
So it is not xenophobia, it is genuine concern at how a communist Government will behave once it owns lots of Australian resources. It is one thing to export resources to China, it is another to sell the whole company.
AOE Price at posting:
$5.17 Sentiment: Hold Disclosure: Held
