|China Wealth Fund Loses Hope in US Stocks and Bonds|
|by Tom McGregor||Mon, Nov 12, 2012, 02:13 AM|
BEIJING: Western economies are struggling to overcome a sovereign debt crisis in Europe, a fiscal cliff in the United States, along with rising trade protectionist sentiments. Dismay appears to have replaced hope with no clear-cut solutions apparent in the foreseeable future.
Despite gloomy economic conditions, many nations in the Asia-Pacific region maintain stable growth rates. Accordingly, the China Investment Corporation, or CIC, has announced plans for more investments with neighboring countries.
"China's sovereign wealth fund will focus more of its $482 billion firepower on Asia in twin bids to beat a rise in protectionism in the West and boost exposure to rapid growth, chairman and chief executive Lou Jiwei said," according to Fox Business.
It added, "the man charged with stewardship of a slice of the world's largest store of foreign wealth lauded the British approach to overseas investments in public sector projects as one for the world to follow and said the policy response to Europe's debt crisis was a reason to stay underweight bonds and stocks there."
The approach is simple: "We would avoid investing in countries that do not welcome us. There are other places to invest." Throwing more money at Europe and the US has not reduced trade barriers enacted by Western governments.
While the West had faced soaring debts, Beijing stood tall by buying more bonds and debt from Europe and North America. Did they respond with gratitude? Perhaps not, let's cite a few examples:
President Barack Obama signed an "Executive Order" to block a privately owned Chinese company from manufacturing wind turbines near a US military site in Oregon. The US raised tarrifs to as high as 250 percent on Chinese-made solar panels.
To read the entire article from the China Daily, link here:
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