Another defining characteristic of the global economy is the free flow of money between countries - especially between the United States and China. In recent years American consumers have been buying goods made in China at an astronomical rate. In fact, the U.S. trade deficit with China is about $160 billion, and China owns approximately $230 billion in U.S. Treasury bonds. In other words, China holds a lot of American dollars. In addition, the United States makes heavy foreign direct investments in China. We own more factories and production facilities in China than they own here. The U.S. foreign direct investment advantage is even bigger than our GDP advantage: $12 trillion vs. $2 trillion - 6 to 1. At some point, we should expect and welcome China investing here.

So what will China do with the money? In the global market, money can be sent almost anywhere. So China can invest it in other nations - including places like Syria, Sudan and Iran - or it can invest in the United States.

We should do all we can to ensure China invests its money in the United States. Increased foreign investment is good for the economy. If CNOOC succeeds in purchasing Unocal, approximately $18 billion will come back into the this country. Also, CNOOC has committed to retaining all of Unocal's American employees. Chevron, on the other hand, has been deliberately vague when asked if it will keep Unocal's American employees if its bid for Unocal succeeds.

China represents a huge investment opportunity for American companies, and allowing Chinese companies to invest in this country will only help our economy grow. We should not fear closer economic relations with China and responsible Chinese companies such as CNOOC. Instead, we should welcome the opportunity and use it to our advantage.