Rightwing bloggers fear Chinese takeover of Idaho

BOISE (AP) - Idaho's attempt to spur economic development by encouraging Chinese investment has resulted in "nonsense" from conspiracy theorists who accuse state officials of trying to develop a "Little China in Idaho," a state official said.

Don Dietrich, director of the Idaho Department of Commerce, told the Idaho Statesman that right-wing bloggers and talk radio reports have led to hundreds of emails from around the country from people worried Idaho officials are trying to cash in by selling the state's sovereignty to China.

"Given what they're reading, they are rightfully concerned," Dietrich siad. "But what they are reading is in some cases nonsense."

Republican Gov. Butch Otter led a trade mission to China last year. And the China National Machinery Industry Corp. has proposed developing a technology zone south of Boise Airport.

Otter has a long conservative history in Idaho, one of the GOP's strongholds. But earlier this month when he hosted a "Capital for a Day" in Castleford in south-central Idaho, he faced questions from area residents about China and Idaho.

He said the Chinese investment is producing tax revenues and jobs while being limited by state and federal laws. He said there is a lot of false information being circulated as fact.

"There was probably a day long ago when I, too, would be concerned about this," Otter said.

Idaho exported $657 million in goods to China in 2010, making China the state's third largest trading partner. Dietrich said that will likely increase.

"We sell them more than we buy," Dietrich said.

David Shambaugh is a China scholar at George Washington University who spoke last year at Boise State University about the U.S.-China relationship.

He said fear mongering could drive Chinese investment elsewhere, but also noted some types of items should be off limits, such as telecom companies and molybdenum, a material used to strengthen steel.

"We Americans need to look at inbound China investment with our eyes open for potential national security concerns, but we should welcome it because it brings jobs," he said.