CNOOC Disappointed By US Reaction, But Decided To Increase Bid

The chairman of CNOOC Ltd. expressed worry over the "overreaction" from Washington on CNOOC?s bid for Unocal, by those portraying the deal as a threat to fair trade and U.S. national security.

In an interview with The Washington Post at CNOOC's headquarters in Beijing, Chairman Fu Chengyu said critics of his company's bid for Unocal were guilty of viewing China through an outdated lens by failing to appreciate how economic reforms have forced Chinese companies to adopt market principles and focus on profitability.

"They don't understand what has happened in China in the last 20 years," said Fu Chengyu.

"Most of the concerns are related to politics and not the commercial side. I didn't expect that so many people would be so sensitive to this. We are following a system that was set up by Western leading companies, especially the United States. We are walking along a path that they paved."

But Fu expressed confidence that CNOOC would eventually convince critics that its acquisition poses no menace. He said his company might consider upping its $18.5 billion bid if needed.