Chinese CEO defends Unocal bid

BEIJING, July 4 (UPI) -- The head of the Chinese oil company trying to buy Unocal Corp. says opponents of the deal don't understand how much China has changed.

"The Chinese people and government are learning from the United States," Fu Chengyu, chief executive of China National Offshore Oil Corp., told the Los Angeles Times. "We are adopting the free-trade system very quickly, even though it's not perfect."

He said those opposing the $18.5 billion offer because of national security concerns may simply be "scared and surprised" by China's rapid rise in the world.

Fu said China would not hoard Unocal's oil and natural gas reserves because doing so would require costly long-distance shipping or breaking long-term contracts.

The U.S. House of Representatives last week passed two measures aimed at blocking the deal. Opponents of Cnooc's offer allege the oil company is an agent of the Chinese government.