Chinese Sovereign Wealth Fund Tests US Political Sensitivity

China's US$300bn sovereign wealth fund, China Investment Corp (CIC), made frontline news on two occasions this week. It is looking to invest around US$300mn in the owner of a Mongolian iron-ore mine and is reported to have an interest in a minority stake in US powerplant developer AES, which has a market capitalisation of US$9.5bn. The AES news has attracted the most attention, because this is a politically sensitive investment in the US infrastructure sector. But one can view the two investments as representing the present and the future of Chinese outward foreign direct investment.

To read the full article, please choose one of the following options: