27 August 2017
There was a buzz around China’s US$200 billion sovereign wealth fund when it was launched in 2007. However, a decade later and much of the shine has come off the fund, with critics accusing it of poor investment decisions, overseas players wary of its links to the Chinese government and talent leaving for opportunities elsewhere.
“Fairly or unfairly, CIC, being a state-backed investment fund from a communist country, will always be looked upon with suspicion by other governments,” said Friedrich Wu, an adjunct associate professor at Nanyang Technological University in Singapore.
Wu has examined dozens of CIC deals and said the lack of a clear definition of national security in the U.S. resulted in broad scope for legal interpretation. At the same time, the negative view of China and its improving economy increased the possibility that the flexible legislation could be exploited to obstruct Chinese investors, he said.
CMS / GPO / Online / Print
Last updated on 28/08/2017