In 2013, the US food conglomerate Smithfield Foods – the country’s largest pork producer and maker of the famous holiday ham – was sold to a Hong Kong-based company called WH Group in a deal worth $7.1bn. It was the largest ever Chinese acquisition of an American company; virtually overnight, WH Group, formerly called Shuanghui International, gained ownership of nearly one in four American pigs. Such a huge business deal did not go unnoticed; news coverage and an eventual congressional hearing questioned the sale with a mix of good, old-fashioned American xenophobia and reasonable concern for the nation’s food supply. But in the eyes of most people, and certainly most American consumers, the Smithfield Foods sale remained just that: a one-off business deal, if they were aware of it at all.
For Nate Halverson, a journalist with the Center for Investigative Reporting (CIR) out of Emeryville, California, the Smithfield deal was the first point in a much wider and concerning pattern – though the company’s CEO, Larry Pope, assured Congress that the Chinese government was not behind WH Group’s purchase, Halverson found evidence to the contrary on a reporting trip to the company’s headquarters: a secret document, marked not for distribution in the United States, detailing every dollar of the deal, and the state-run Bank of China’s “social responsibility” in backing it for “national strategy”.
This doesn’t have to be nefarious but it could be.
China has 1.4 billion people to feed, and AFAIK USA has huge potential to increase agricultural production.