Abstract

Host country regulatory environment significantly affects the overseas investments of the China Investment Corporation (CIC). As the major targets for many Sovereign Wealth Funds (SWFs), European companies are of strong and long-term interest to CIC too. In response to the different regulatory philosophies and measures, CIC has adopted varied models when approaching companies in the UK, Germany, and Italy. The approaches vary by whether they are direct or indirect, and through outsourcing or portfolio. With respect to the SWFs and the countries invested in, there exists a dilemma whose best solution is to bilaterally depoliticize, utilizing a more moderate strategy and making most use of legal tools such as disclosure. This approach achieves a win-win equilibrium and allows for collaboration in an atmosphere of reciprocal trust and mutual benefit.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call