China's Sovereign Wealth Fund: Developments and Policy Implications

Description:

China's ruling executive body, the State Council, established the China Investment Corporation (CIC), a sovereign wealth fund, in September 2007 to invest $200 billion of China's then $1.4 trillion in foreign exchange reserves. Congress and financial analysts raised concerns about the CIC after its creation, partly because it was a comparatively large sovereign wealth fund, partly because it was government-owned, and partly because it reported directly to the State Council. These concerns raise question about U.S. policies on inward foreign direct investment (FDI) and the global competitiveness of U.S. financial institutions. Certain commentators suggest that more should be done to protect the United States from China's rising role in international capital markets.

Creator(s): Martin, Michael F.
Location(s): China
Creation Date: September 23, 2010
Partner(s):
UNT Libraries Government Documents Department
Collection(s):
Congressional Research Service Reports
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Creator (Author):
Martin, Michael F.

Specialist in Asian Affairs

Publisher Info:
Place of Publication: Washington, D.C.
Date(s):
  • Creation: September 23, 2010
Coverage:
Place
China
Description:

China's ruling executive body, the State Council, established the China Investment Corporation (CIC), a sovereign wealth fund, in September 2007 to invest $200 billion of China's then $1.4 trillion in foreign exchange reserves. Congress and financial analysts raised concerns about the CIC after its creation, partly because it was a comparatively large sovereign wealth fund, partly because it was government-owned, and partly because it reported directly to the State Council. These concerns raise question about U.S. policies on inward foreign direct investment (FDI) and the global competitiveness of U.S. financial institutions. Certain commentators suggest that more should be done to protect the United States from China's rising role in international capital markets.

Physical Description:

13 pages

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Subject(s):
Partner:
UNT Libraries Government Documents Department
Collection:
Congressional Research Service Reports
Identifier:
Resource Type: Report
Format: Text