The Chinese government want none of this protectionist stuff. It has money burning a hole in its pocket and its wants to put that capital to work in places like the US.
According to the FT "critics have suggested the rise of sovereign wealth funds such as Beijing’s $200bn China Investment Corp (CIC) may give their opaque state masters unprecedented influence over other countries’ commercial assets." China disagrees, strongly.
China’s protests are a little too loud. It is well known that the country’s central government restricts the amount of foreign capital that can be put into Chinese companies, especially those that manage strategic assets. Of course, the Chinese would like other governments to offer it more liberal rules.
The question of what funds from China, or, the Middle East, for that matter should own is not entirely unfair. Could they buy Boeing (BA) and have access to its technology? What about a defense contractor? Of a biotech company?
China has not earned the right to handle other country’s or company’s IP assets. Piracy is too rampant in the big country, and the government has shown that it will only pay lip service to preventing the stealing of valuable property from companies in the US and elsewhere.
The complaint from China’s sovereign funds rings a little hollow.
Douglas A. McIntyre
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