The Chinese government is standing behind Shenzhen Nanshan Power’s decision not to honor its contract with Goldman Sachs.
Why would the U.S. government never take such a position? Because Goldman Sachs is a major shareholder in the private corporate enterprise known as the U.S. Federal government.
The Chinese government is a corporate enterprise as well, to be sure, but Goldman Sachs isn’t among its major shareholders.
“Goldman Sachs was one of the foreign banks, along with Citigroup, Merrill Lynch and Morgan Stanley, blamed by the state assets watchdog for providing “extremely complicated” and difficult to understand derivatives products.
“Shenzhen Nanshan Power said in a statement that it received several notices from J. Aron & Company, a trading subsidiary of Goldman Sachs, for at least $79.96 million as compensation for terminating oil option contracts.
“‘We will not accept the demand by J. Aron for all the losses and related interests,’ said Nanshan, in line with the stance it took last December.”
Read more at Reuters.