Are the Chinese Accumulating Significant Ownership Positions in US Companies?
February 11, 2010 by prof77
Prime Minister Wen Jiabao of China and other officials have repeatedly expressed worry about how China’s holdings of U.S. Treasury securities could be hurt by inflation or by mounting United States debt. By buying the securities of international companies, China could spread its fast-growing wealth more widely. (Source)
The sovereign wealth fund of China, China Investment Corp., in 2007 and early 2008 acquired a $3 billion nonvoting stake in the American private equity firm Blackstone. (Source)
BlackRock was originally founded from within the private equity firm Blackstone Group in 1988. (Source)
David Barboza and Keith Bradsher reported recently in The New York Times that China Investment Corp, the sovereign wealth fund of China, owns stock in many of the best-known American firms. (Source)
Some United States politicians in both parties have been nervous about China’s growing financial reach, and particularly wary that China might seek political influence in the West commensurate with its corporate stakes. (Source)
Meanwhile, China appears to be dumping debt positions as they shift their investments to equity (stock shares). (Source)