Newport News shipyard crane (Joe Fudge, Daily Press file photo / December 14, 2007)Navy Cautious On Foreign Ownership Of Northrop's Shipyards -- Daily Press
NEWPORT NEWS —— Foreign ownership of Northrop Grumman Corp.'s nuclear shipbuilding business "would present significant challenges" for the U.S. Navy, a spokesman said Monday.
Northrop, whose Newport News shipyard is the sole manufacturer and refueler of the Navy's nuclear-powered aircraft carriers and one of two to build nuclear-powered Navy submarines, said last week it is seeking strategic alternatives for its shipbuilding enterprise, which includes selling or spinning off the unit.
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My Comment: With China owning a good chunk of America's debt .... I am sure many decisions done in Washington are now made with an eye on how China would react. The same can be said about companies that are owned by foreign nationals .... will companies be loyal to the needs of the U.S., or will the owners be influenced by the government that they are operating in. As a non-U.S. citizen this is not complicated, I will listen to the government that I live in (i.e. Canada) more than what the U.S. will tell me.
3 comments:
i don't understand your comment on this article.
what are you trying to say????
we might not allow Northrop to sell to for example BAE because China might react badly?
also i don't get that you will listen to your government before you listen to what the US government says...how would they have more or better visibility on the issue.
Thank you Solomon for your comment.
Rule of thumb (for me).... never write a comment on an article when you are about to go to sleep because you are half asleep.
In short .... foreign owners will always prioritize what their government tells them to do .... not the U.S.
But in the case of the U.S. defense industry, I doubt that this will be a problem. There are only a few companies in the world that have the resources and management to take over an operation like Northrop's, and if they do there will be U.S. restrictions and guidelines on what they can and cannot do.
The Chinese have the means and resources to buy a company like Northrop, but they will not because the U.S. government will say no. BAE Systems will probably purchase this operation .... and be permitted to do so .... but again there will be restrictions and guidelines on what they can and cannot do.
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