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China Fund will not Bailout Troubled Western Firms

SHANGHAI — China Investment Corp (CIC), the country’s $200 billion sovereign wealth fund, is unwilling to bail out troubled Western financial firms because of unfair restrictions on its investment, a deputy general manager of the fund said on Saturday.

“On the one hand, the US needs us; on the other hand, they’re suspicious toward us. They want us to invest at their will. That’s not sincere cooperation,” Wang Jianxi told a financial conference in Shanghai.”

“That’s why sovereign funds now have little willingness to take an active role in easing the financial crisis.”

Wang said the US government had imposed tight restrictions on CIC’s investment because it feared the fund was controlled by China’s ruling Communist Party, and thus could threaten US national security.