Why Is China Treating North Carolina Like the Developing World?
How lax regulation made it cheaper for China to outsource pork production — and all of its environmental and human costs — to the U.S.
In July 2013, Larry Pope, the CEO of Smithfield Foods, the largest pork producer in America, was called to testify before a U.S. Senate committee about the pending sale of his company to a Chinese conglomerate now known as WH Group. The $7.1 billion purchase, the largest-ever foreign takeover of its kind, had attracted concerns. The Chinese pork manufacturer had a checkered health record, allegedly feeding its hogs illegal chemicals, and Smithfield had a long history of environmental problems at its farms, including a $12 million fine for several thousand clean-water violations. But the worries did not stop there. The Chinese government had a track record of using nominally private entities as proxies for state power. “To have a Chinese food company controlling a major U.S. meat supplier, without shareholder accountability, is a bit concerning,” said Republican Sen. Chuck Grassley. “A safe and sustainable food supply is critical to national security. How might this deal impact our national security?”
