In China the size of its middle class is constantly on the rise. The middle class is getting richer by the day and has access to resources, like to spend on food items. It is seen that many middle class people in China include pork in their diet. Enhanced Chinese population size is causing a crunch on its resources and therefore it is looking for other ways to overcome this problem. In the US, the population is relatively small and there are many companies which process pork. The US is a sizable market for pork consumption. China has interests on the US food businesses. Very recently it has invested in the Smithfield Foods China in a multi-billion dollar deal. Expectations are high from the Virginia, US based pork manufacturing firm.
US Lawmakers Suspect Beijing’s Hidden Motives in US Company Takeover
Smithfield Foods China is known to be the largest producer of pork. The business supplies pork to more than 40 countries around the world. After the company’s acquisition, many US lawmakers have started pondering about the reasons for China’s investment in US businesses. Many have already started apprehending that China is a communist country and therefore it has other hidden motives. They fear that the takeover of Smithfield Foods China is the act of the Chinese government. Many senators and the US lawmakers are just speculating on the issue.
US-China Trade Wars Affecting Major Businesses
However, it is quite obvious that the US and the China have opposite views when it comes to socio-economicmatters, foreign affairs and so on. Experts believe that there is some kind of cold war going on between the US and the China that may lead to other issues. Contemporary reports suggest that trade war is going on between the two countries. As the US is imposing trade restrictions on other countries including China, the country too is retaliating and in the process many businesses on either side are getting adversely affected.