Chinese state-controlled oil and gas company CNOOC Ltd. is waging a high-stakes public relations campaign to focus its bid for U.S. energy producer Unocal Corp. on shareholder value, and away from politics.

Even before making public its $18.5 billion for Unocal last week, competing with a $16.6 billion deal with Chevron Corp., members of Congress sent President Bush a letter warning him of the threats posed by China's "pursuit of world energy resources."

"This is a commercial deal, a commercial bid from one New York Stock Exchange listed company to another New York Stock Exchange listed company designed to improve shareholder value for both," said Mark Palmer, a managing director at Public Strategies Inc. of Austin, Texas, one of two public relations firms hired by CNOOC.

Paul Krugman thinks we should be worried about this.

Two things that have been said often apply here. First, Chinese foreign policy consists of one word: oil. Second, its likely that any conflicts with China would be fought out on an economic battlefield.

So what does everything think? Should we be concerned about this?

CNOOC: Unocal Bid Not About Politics - Yahoo! News