This paper examines a 2013 merger between Virginia-based Smithfield Foods and China’s largest pork processor, WH Group, which this paper considers in terms of foreign direct investment. By the early 2010s, it seemed like a partnership between the “world’s largest pork producer” and “China’s no. 1 butcher,” could offer benefits for both firms while strengthening US-Chinese political ties. Shuanghui was eager to gain from Smithfield’s managerial expertise, positive brand reputation, and their advanced processing technologies. Smithfield was looking for a way to pay off its debts and gain access to the Chinese market. With the purchase of Smithfield, WH Group now owns 1 in 4 pigs “grown” in America; because of prior mergers and acquisitions, many of these pigs are located in the state of North Carolina.
However, subsequent political developments and trade tensions have put enormous strain on this relationship; many indicators suggest that the merger is not going exactly as planned for either party. From 2016-2019, Smithfield conducted a major reorganization effort known as “One Smithfield” to consolidate their holdings and centralize management, and Smithfield was delisted from U.S. stock exchanges in 2016. Meanwhile, WH Group’s stock plummeted in 2018 as the trade war dragged on, and Smithfield products turned out to be “too salty” for Chinese consumers’ palates.
By focusing on the connections between foreign direct investment and nationalism, this paper grapples directly with the consequences of nationalist rhetoric and xenophobic actions. More importantly, however, this paper considers the gulf between the national political conversation about the risks and benefits of FDI and the local impacts, in which pork interests comprise a politically powerful bloc – not to mention big business – whether one is in North Carolina or Henan Province.