Foreign M & A frenzy face the United States should be more pragmatic.

<P> The United States and France, Alcatel-Lucent said recently that may be merged, if the two sides agreed to the merger, the transaction will be certain to be in Washington on national security concerns. .After all, Lucent Bell Labs has a long history, the history of the laboratory in the U.S. ballistic missile technology and submarine sonar and communications satellites and other technical aspects of a symbol of outstanding ability, but also the Defense Department's long-term partner. .Not long ago, the United States rejected the compelling case of foreign acquisitions, that Dubai Ports World's bid to several U.S. ports. .Immediately from the two telecom giants of the trans-Atlantic merger, unless handled well, or it may give a strong trade protectionist forces open the door. .</ P> <P> a private company originated the NATO allies would be an investment boycott by the United States, this idea seems far-fetched. .But not in France nor the United States Congress the Bush administration's favorite, and in the midterm Congressional elections approached, the polarization of American political system, coupled with continued weakening of presidential power, no one can underestimate what will happen. .</ P> <P> deal with this may give rise to fierce debate over the case has 3 methods, but only one will work. .To persuade the skeptics get to the bottom, the shouting slogans free market is useless. .To erect barriers to investment in the coming will only weaken the U.S. interests at home and abroad, and to the whole world economy suffered a setback. .Only in the middle of competing interests to balance pragmatic clever things to be successful. .</ P> <P> in the post-"9.11" era, the United States vulnerable to destruction of infrastructure, it is true, but the solution is not reached for blocking foreign investment, is to create laws and regulations, so that in the United States who have .What assets become irrelevant issues. .</ P> <P> United States also needs foreign investment to improve the identification method. .Safety review team needs more from his cabinet and vowed to protect confidential information, the attention of outside experts, not those interested in mid-level officials in the government sphere of influence concerns. .Investigation period should be shortened in order to avoid endangering the reach of business transactions in a timely manner. .However, when the foreign company by a foreign government-owned, while the proposed investment is likely to endanger national security, a reasonable approach might be to set up a no stain on national security, the Americans led the special board to oversee this is .acquired U.S. subsidiary. .</ P> <P> sensitive national security question in the cause of the investments, but also must be more consultation with Congress. .This must be specifically authorized by a committee, with the top-secret intelligence matters dealing with the method to carefully handle carefully. .But President Bush should now announced that he will veto any Congress to have the ability to approve or reject trade legislation. .In addition, because of various special interest groups lobbying Congress, each foreign investment are likely to be politicized. .</ P> <P> government also held a secret briefing for Congress to explain the United States the urgent need for foreign capital. .U.S. 2.5 trillion owed to foreign creditors, must be entered each day for about 2.5 billion current account deficit financing. .If the withdrawal of foreign capital, the U.S. economy will experience slow painful tough period. .</ P> <P> the Bush team should explain to the legislature, an open investment environment for U.S. companies operating overseas, how important it is. .In 2004, U.S. multinational companies in a 229 billion U.S. dollars of overseas investment, almost 10 years ago, an increase of 300%. .A large number of U.S. "Fortune" 500 companies rely on more than 30% of the revenue from overseas markets, not to mention access to technology and human resources. .If the United States will be shut out foreign investors, then other countries will be the same means to deal with the U.S. company. .</ P> <P> Finally, if Lucent and Alcatel's board of directors approved the deal approved by both the Bush and Chirac government should convene a bilateral team, clear the political obstacles to a deal. .</ P> <P> Now, there is a collision of two trend. .On the one hand, with the steel, automotive, telecommunications and banking industry consolidation, Asia, and OPEC are recycling huge trade surplus, coupled with more companies from emerging market countries, tapping the door of Western economies, the United States .absorb more foreign direct investment worldwide has increased the pressure. .Meanwhile, France touted "economic patriotism", Spain is focusing on creating "national champions", and from Korea to Argentina to foreign investment in many countries harbor ambivalence. .As the world's most important economies in the United States, the government quickly set the right tone is crucial. .</ P>.