Like gravity, globalization has come to be seen in recent years as an unstoppable force of nature. If the world is flat, capital, goods and services can go wherever they want. But last week, the process of cross-border economic integration suffered the same fate as foolish mortals who would defy Newtonian physics: it crashed to earth.

The furious fight over whether several port terminals in the United States should be owned by a company based in Dubai was resolved uncharacteristically and abruptly on Thursday. DP World, owned by the government of the United Arab Emirates, announced it would transfer the American operations of Peninsular & Oriental Steam Navigation, the British company it is in the process of acquiring. 

Last summer, anguished protests stopped the Chinese oil company Cnooc from acquiring United States-based Unocal, even though Unocal slakes only a tiny fraction of America's oil thirst. Indeed, the Dubai controversy is merely the latest manifestation of a new condition afflicting politicians, policymakers and ordinary citizens all over the globe. Call it Selective Globalization Syndrome.

Open borders and the free flow of goods and services across borders have created the conditions for Selective Globalization Syndrome to spread. And it may just be in its early stages.

Emboldened by their success at thwarting the Dubai ports deal, legislators are now more eager to challenge foreign economic interests in thenme of mantional security. Members of Congress are falling over themselves to introduce legislation that would tighten the review process, requiring, for example, extended scrutiny of any deal involving a state-owned company.
The New York Times, March 12, 2006