In the last decade, the rapid development of a number of the most dynamic states of the former "third world", primarily China and India, has made significant adjustments to the balance of power in the global economy and finance. An important place in this process is occupied by the so-called Sovereign Wealth Funds. They have significantly stepped up their investment activities even in the context of the global financial and economic crisis and continue to step up their efforts at the current stage of the slow recovery of the global economy.
This is stated in the articles of V. V. Samartsev and Ph. D. E. M. Rusakov.
China Keywords:, sovereign wealth funds, foreign investments
V. V. SAMARTSEV
China's gold and foreign exchange reserves have been growing rapidly since the late 1990s, thanks to a positive foreign trade balance and the stimulation of foreign capital inflows (in October 2010, their volume reached $2.65 trln1). Initially, the accumulated funds were invested in long-term debt obligations of the US government (T-bonds), but the huge budget deficit of the United States caused concern to the Chinese authorities.
In search of the most efficient use of international reserves, it was decided to create a state investment fund - the China Investment Corporation (CIC). The authorized capital of the new institution was $200 billion.
The main activities of the company are investments in energy, real estate, high technologies, financing and lending, import and export.
The global financial and economic crisis and the fall in the dollar exchange rate reinforced Beijing's concerns about the dollar as the world's reserve currency and confirmed the correctness of the decision to create a CFC, which has become one of the major effective tools for facilitating export-import operations and buying up foreign assets - raw materials, energy, financial, high-tech, etc. At the current stage of the slow recovery of the global economy, the corporation continues to play a ... Read more