China: An Offer Reveals Beijing's Broader Energy Goals

China National Offshore Oil Corp. Ltd. (CNOOC) has bid $18.5 billion to acquire Unocal Corp., a U.S. oil firm that previously agreed to be purchased by Chevron for $16.4 billion. The deal would require CNOOC to take out a $16 billion loan from a group of Western and state-owned banks. CNOOC's move illustrates three major trends in Chinese economic behavior: the drive to increase energy self-sufficiency through technology, the push to acquire American assets, and the reliance on state banks to advance broad Chinese policy goals. Though the deal is not likely to go through, the offer shows that China will pursue its energy goals aggressively in the future.