America's Response to Energy Demand of China and Sino-US Relationship in the 21st Century: A Case Study of Failed Merger and Acquisition between the China National Offshore Oil Corporation and the ｕｎｉｏｎ Oil Company of California

Qingming Zhang1, Xiaojuan Fan2*

1Law School, Shandong University of Technology, Zibo, 255000, China

2School of Law, Shandong Agricultural University, Tai’an, 271018, China

*Correspondence author

Abstract: On June 23, 2005, CNOOC announced to bid for America’s seventh Oil Corporation, Unocal, for 18.5 billion dollars. The news shocked both Washington and America’s general public. Although CNOOC made all kinds of concessions to clear Washington’s concerns, the bid was withdrawn due to political reasons. Failure to win the bid raised a series of economic, political, financial and diplomatic issues between China and America. Even though the failed case is just an occasional occurrence, it negatively affected the relation-ship between China and the U.S. In the new century, both China and the United States should work together to enhance their mutual trust and avoid misjudgment.

Keywords: Energy demand; Oil; the China National Offshore Oil Corporation; Energy security