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There's also this story we're following for you today in addition to -- park and politics are mixing on Capitol Hill this afternoon Smithfield Foods chief executive.
It's going to be testifying in front of a senate committee over his company's proposed four point seven billion dollars sale to to managed my way international.
Senate agricultural committee chairwoman Debbie Stabenow one of the most vocal congressional critics of this sale.
Join us a couple of weeks ago right here on markets now.
Chong -- has had a very spotty food safety record.
What happens if they are allowing that -- to go to China right now before the standards are high -- -- That's her opinion joining us -- Heritage Foundation senior research fellow Derek scissors who disagrees with senator Stabenow and and Derek you know she's the one it's gonna be leaving the -- she's the one that of course won -- -- to testify.
How are the standards supposedly -- -- changing for Smithfield under the FDA in the United States I don't -- -- her point is here.
Well it's just two points one which she didn't send that clip but she says and all the time which is -- that she's just shouldn't sell.
Large companies to China.
And that's where she's -- a line that's not the American government's business to tell a company weather can.
By another company or sell itself to another company and her second point about quality control.
It's a -- point but -- simple.
One way after they by Smithfield has to -- US law.
And that's up to the Department of Agriculture the Food and Drug Administration.
If the Senate's worried that strong raising an abate US law that's what they should focus on that's a perfectly reasonable complaint.
How but I think it's just a mass for protectionism and senator -- -- case.
We have and you you yourself we should mention here Derek have testified in front of congress multiple times about the issue of China -- specialty.
What what what -- what -- pump say today to that committed to basically get them off of his back I mean the unions back this deal.
Shareholders -- the steel there's no -- that says at this still should not go through.
But basically that is seven -- Right I mean he hit the nail on the head when when the word China is usually get a lot of posturing.
Whether it's China currency or or acquisitions and any almost any issue can come up with.
And there's nothing -- to do to get senator stab wound or some other senators and members of congress are -- that off your back.
-- using this is an opportunity to make speeches about how bad China is.
And yeah there are some problems and Chinese behavior there's no question this deal though is a good deal it was a deal supported by stockholders supported by the union.
This is just this is political theater I've got a chance to talk about China -- hold -- hearing.
Okay 130 -- that's exactly what she's been -- what we're gonna monitor what is sad about the transaction because shareholders and investors.
Are curious to see what happens -- there is going to be -- ball out -- say that there is not let's talk about the future of Smithfield itself.
It isn't it true that China and the Chinese consumer.
Are really looking for about -- coming from US based print production to go overseas wouldn't this be a boost don't you thank.
For the company itself as far as -- out but.
Yeah I mean this is access better access to that to the biggest pork market in the world.
Because of US anti trust rules which which I think -- good idea Smithfield can't really expand in the US they can expand endlessly in China.
So it's it's a great opportunity for Smithfield execution is going to be a little bit tricky.
You don't magically know how to operate in China and the US -- the same time just as you combine these two companies so that's something to watch.
But if they can -- off this is a great opportunity for Smithfield in the years to come.
You know significantly say consumers in countries in Asia that the ban wheat from or again because it genetically modified like where there aren't a bit about Smith failed in -- -- -- -- Derek says thank you very much for your take on this you -- certainly the person ask about it thanks Derrick.
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