Mar 07
12
China Invest
The Chinese government is planning to set up a company to invest some of the extraordinary amount of dollar cash reserves that they have accumulated.
This could be one of the major change agents in the balance of power going forward: imagine some of the greatest brands in the world becoming Chinese owned… That wouldnt really be that big of a deal, right? But imagine that the next google is Chinese funded and Chinese owned with an agenda that does not comply with western thought? An agenda that takes an entirely orthogonal approach to copyright, IP, price, politics, energy efficiency…..
Here is the original story from the Tribune.
Finance Minister Jin Renqing gave no details of how the
Cabinet-level company might invest the reserves, which are believed to
be mostly in safe but low-yielding U.S. Treasury bonds. He also did not
say what portion of the reserves might be channeled through the company
or when it would start to operate.
“We can achieve more profit from the investments,” Jin said at a
news conference. “We are now preparing the organization of this new
corporation.”
Analysts have speculated for some time that China would create an
investment company, and officials have said repeatedly they want to
make better use of the country's reserves.
Economists have suggested Beijing might allocate as much as
US$200-400 billion (€150-300 billion) to the new company, which in a
single move could create one of the world's richest investment funds.