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Thread: How far will RMB go?

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[quote=MARRIE,268354]The United States has been particularly skittish about accepting investments from sovereign wealth funds and state-funded companies, fearing interference from foreign governments in private companies.

U.S. lawmakers successfully killed off part of a deal between DP World and British port operator Peninsular and Oriental Steam Navigation Co., or P&O, last year — a furor in Congress led the United Arab Emirates company to sell the division that manages U.S. ports.

Chinese officials have tried to diffuse concerns about political interference by saying they plan to make minority investments abroad, leaving control in the hands of foreign managers, and avoid politically sensitive industries such as energy and telecommunications.

Wen said that China had earmarked around $60 billion to $70 billion of the fund for foreign investment.

"This is a very substantial fund. It can invest positively. I realize that in some countries it is controversial, but I have talked to Premier Wen (about that)," Brown said.

Wen said the fund, set up to invest some of China's $1.5 trillion in foreign exchange reserves, would help redress the imbalance caused by China's hefty foreign trade surplus.

"We have to ensure our foreign reserves are invested appropriately and fairly," he said, adding that the fund would be run completely independently of the government. "This investment facility is entirely commercial."

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