Sinopec is the second-largest company outside of the U.S. (measured by revenues). Sinopec is also owned by the Chinese government.
In 2002, Sinopec “exported,” engineering services, project management, and construction services to a China-based joint venture, owned by the China National Offshore Oil Company and Royal Dutch Shell. CNOOC is another state-owned Chinese company. Royal Dutch Shell is the single largest corporation outside of the U.S., measured by revenue.
The deal, according to Ex-Im minutes, was financed by an unnamed Chinese bank. And Ex-Im provided a $200,000 loan guarantee to cover it, because U.S.-based Bechtel was a major supplier of the services Sinopec’s U.S. subsidiary was exporting.
Ex-Im Myths Exploded
1) Ex-Im provides financing where none is otherwise available: Again, two of the world’s three largest corporations were doing business, with the backing of the entire Chinese government. It seems the involved parties could have financed this or lined up financing that didn’t require the U.S. taxpayer.
2) Ex-Im is a needed counterweight to Chinese industrial policy: Here, Ex-Im was subsidizing at least two Chinese state-owned corporations, CNOOC and Sinopec.
3) Ex-Im helps U.S. companies vis-a-vis foreign companies: Here, Ex-Im was subsidizing the two largest overseas corporations.
