GE just announced an order to turn away from Boeing and purchase 5 Chinese aircraft, with an option to buy 20 more.  Just wait to see how this gets Congress' underwear in a bunch.  Given that GE has taken money as part of the financial bailout program, no doubt many congresspeople believe they now have a say in their business decisions.  Since GE and other bailout participants did agree to certain compensation and dividend guidelines,  how big of a leap is it for Congress to believe it can also tell companies who they can and cannot do business with?

This exposes the dark underbelly of unwise and/or poorly structured government intervention into private markets.  There is often a legitimate role for government, but that role should not involve dictating operational business decisions.  That is a recipe for disaster.  A better approach would include legislation that broadens shareholder rights.  Shareholders, as owners, should be the ultimate arbiters. 

If the government ends up intervening into this transaction, that is what makes free market purists, of which I am not one, so skittish.  Once Pandora's Box is opened, often times it leads to grossly unwarranted policy overreaches. 

Personally, I'd rather see GE buy American, but they have a fiduciary obligation to make business decisions that are in the best interests of their shareholders.  It is true, though, that those interests can be more than just financial in nature.  If GE is not in violation of any national security or other restrictions, then they should be free to proceed as they see fit.  And, equally as important, their shareholders should be allowed to evaluate the reasonableness of management's stewardship of the company, and independently determine if it is in their best interests as owners to continue to employ them.