Smithfield Foods’ planned return to a publicly traded company makes sense for a lot of reasons, but an important one is to provide some cover amid the growing scrutiny of Chinese-owned entities operating on U.S. soil.

That scrutiny was only going to become greater for Foods in a tense geopolitical climate with rising conflict between democracy and authoritarianism around the world. Federal and state laws regulating foreign ownership of property and other commercial enterprise will proliferate as long as China poses a threat to America’s security and economic interests.

WH Group, Foods’ Hong Kong-based parent, announced the proposed “spin-off” of our community’s namesake in a July 12 proposal to the Hong Kong stock exchange. Under the proposal, the spin-off would include Smithfield Foods’ businesses in the United States and Mexico, even as it remained a subsidiary of WH Group.

It wouldn’t entirely remove the stigma of Chinese ownership, but open investor participation and regulation by the U.S. Securities and Exchange Commission surely will help.

We don’t see it as greatly affecting one way or the other the burning question for Isle of Wight residents: whether Foods remains headquartered in its birthplace.

Contrary to dire predictions at the time, the sky hasn’t fallen since WH Group purchased Foods in 2013. The company has gotten stronger financially, and its corporate campus on Commerce Street has been bustling with people and activity since a return to normalcy after COVID-19. 

Corporate decision-making can be fickle. Foods moved its headquarters once before, and it’s back today only because Joseph Luter III was in charge and made it happen, to the enduring benefit of Smithfield. His influence won’t save us next time.

Community leadership must be ever diligent about diversifying the local economy to soften the blow should Foods ever leave again.  

In the meantime, Mayor Steve Bowman said it beautifully:

“Smithfield Foods is Smithfield, heart and soul. I trust that this decision will ensure that the Town of Smithfield will remain the flagship location of this great company. I believe the entire Council is supportive of the fact that we are truly blessed to have Smithfield to be the corporate fabric of our Town. As mayor, I remain so very happy for the legacy that has been set for us to be the beneficiaries of the successes of this great company, and the donations that have been provided to make us greater and better. Buy Smithfield when the market opens. I will.”

So will we.