China’s CIC Says Trump Creating U.S. Investment Opportunities

  • Ding said U.S., China should refrain from a trade war
  • CIC sees opportunities in private equity, hedge funds in U.S.

Increased fiscal spending and infrastructure investments under Donald Trump’s leadership may create more U.S. opportunities for China Investment Corp., said Ding Xuedong, chairman of the nation’s $814 billion sovereign wealth fund.

CIC could have more opportunities to invest in U.S. infrastructure and participate in acquisitions in manufacturing, Ding said at the Asian Financial Forum in Hong Kong on Monday. CIC expects to increase private equity, hedge fund and direct investments in the U.S., Ding said, who also cited real estate and technology as promising avenues. The U.S. is the largest recipient of CIC’s overseas investments, said Ding.

Concerns are growing among economists that the risk of significant Trump-triggered trade tensions could slow growth throughout Asia, the world’s best-performing region, which accounts for 67 percent of America’s goods trade deficit, according to Morgan Stanley. Ding said the U.S and China, which will be the world’s top two growth engines in 2017, shouldn’t engage in a trade war and that the nations should cooperate.

During his campaign, Trump pledged to brand China a currency manipulator and impose a 45 percent tariff on Chinese imports. China is prepared to step up its scrutiny of U.S. companies in the event Trump takes punitive measures against Chinese goods, such as subjecting them to tax or anti-trust probes, according to people familiar with the matter. 

America’s trade deficit with China narrowed to $21.7 billion in December, the lowest in six months, bringing last year’s cumulative figure to $250.8 billion, according to data released by China’s Customs General Administration. The yuan weakened 6.5 percent against the greenback in the onshore market last year.

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