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Senate doubts over China’s Smithfield deal

The largest-ever US takeover by a Chinese company came under fire in Washington yesterday after a senior Democratic lawmaker said Shuanghui’s proposed $4.7bn purchase of Smithfield, the pork producer, raised long-term questions about American food security and economic fairness.

“Smithfield might be the first acquisition of a major food and agricultural company, but I doubt it will be the last,” said Debbie Stabenow, Democratic senator from Michigan, who heads the powerful agriculture committee. “Could this sale happen if it was the other way around? Based on what we’ve heard, it sounds like the answer is ‘no’.”

The hearing coincided with the opening of annual US and China talks on foreign policy and economic issues in Washington. Trade and investment were high on the agenda this year amid complaints by Chinese state-owned companies that they are not welcome in the US.

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