China’s Pork Deal May Hinge on the Risk for an Uproar

Who knew that pork could be a national security problem?
That may be the case with the $4.7 billion offer from Shuanghui International of China for Smithfield Foods. The deal will be subject to a national security review by the Committee on Foreign Investment in the United States, or Cfius. There are important implications not just for pork but for how Washington looks at Chinese investment.

Shuanghui’s proposed purchase would be the largest Chinese acquisition of an American company, so it is bound to receive intense scrutiny. Shuanghui was not required to submit to a review, but that would have been foolhardy given the size of the deal and the money at stake. The decision also means that the United States government cannot come back later and undo the transaction once the committee approves it.

To understand what will happen next, it is important to understand the sometimes dry history of the national security review. Read More