Managers in the offices of Dubai Ports World, or in the headquarters of CNOOC, China's offshore oil company, could be forgiven this weekend for allowing themselves a measure of glee at the discomfiture of US private equity firm Carlyle.
The reported decision by the commerce ministry to block Carlyle's buyout of Xugong Group Construction Machinery must seem like just punishment for the American hostility which forced Dubai to agree to sell its newly acquired port operations in the United States and CNOOC to back away from its attempted purchase of Unocal's oil assets.
But it would be better if they kept their gloating to themselves. A desire for vengeance is a poor basis for policy. It will be a black day for the cause of free trade if China starts trading tit-for-tat acts of random protectionism with the US and the European Union.
China, the US and Europe are all members of the World Trade Organisation. All would have benefited if they had worked more constructively for free trade at last December's WTO meetings in Hong Kong. Their actions since have shown how little they believe in the process.
Nevertheless, an attack on Carlyle could have deeper and more troubling implications for foreign investment in China than the hysteria over Chinese investments overseas.
Even if the report in Guangzhou's Southern Weekly turns out to be premature, it seems to reflect real concerns at top levels of government about Carlyle's acquisition of such a major mainland business.
