Smithfield Foods China is a popular pork producer in the USA. The Virginia based business was recently purchased by a Chinese company. The deal was big and it gives the Chinese food market access to US pigs and pork. This deal became a cause of concern for the US law makers and they are trying to figure out the purpose of China’s making investment in the US pork market. Smithfield Foods Chinasupplies pork to more than 40 countries around the world. The business is undoubtedly big and the pork produced is about 25% of the total pork produced in the USA. The business has state of the art facility as far as production of different types of pork is concerned. Reports suggest that the business butchers roughly 10000 pigs on a daily basis. The business has its entire staff qualified to butcher the pigs properly.
US Senators Apprehensive of Beijing’s Involvement in Important Takeovers
There is a great demand for pork in the USA. There are many pork processing businesses in the country to cater to the demands of the US public. With the acquisition of Smithfield Foods China, the US law makers are quite concerned. Many of them apprehend that the Chinese are up-to some mischief. These US senators are of the opinion that Beijing is directly associated with the high valued deal. However, there are US lawmakers who believe that China’s huge middleclass is getting rich by the day and therefore they are investing on new food, pork for example. Since the demand for pork is high in China therefore a Chinese company has acquired Smithfield Foods China.
Sino-US Tensions Affecting Major Businesses
China and the US are different from each other in more than one ways. Their cultures are different, ideologically, the two countries are different. In view of the enhanced tension between the two countries, many apprehend that there is some kind of cold war between the two. Both the US and Chinese businesses are finding it difficult to work in this environment.