China wants to invest in U.S. and European infrastructure

China wants to invest in infrastructure improvements in the U.S. and Europe, according to the chairman of the Asian superpower’s sovereign wealth fund.

China Investment Corp.’s $410 billion fund was created in 2007 and has so far reportedly kept a low profile with smaller investments in publically traded companies in order to avoid political issues in foreign markets.

However, Lou Jiwei, China Investment’s chairman, in a commentary in the Financial Times, said “China is keen to get involved” in helping fund infrastructure improvements in Europe and the U.S., such as for transportation, digital communications, energy, and water.

China currently has $3.2 trillion in foreign reserves and there have been various international commentaries that those types of funds could be seen as the country’s desire to gain leverage for political or trade issues at a time when many foreign governments are anxious for investment, reports the Associated Press.

China is the U.S.’ largest foreign bondholder, with $1.15 trillion in Treasury debt as of September, according to the A.P.

Lou said the CIC’s interest is as a commercial investor seeking a profit.

"CIC believes that such an investment, guided by commercial principles, offers the chance of a win-win solution for all," he said in his commentary.

Lou cited the estimate that the U.S. must invest at least $2.2 trillion in an infrastructure overhaul.

"Free of the inflationary pressure that afflicts many emerging economies, the U.S. and Europe should make substantial investment," he said. "We cannot count on developing countries to deliver a stable economic recovery on their own."

Source: Cargo Business News