Hoover Institution Project on China's Global Sharp Power

No other country in history has so rapidly transformed its economy from being among the world's poorest and most isolated to the world's second largest economies, at the heart of the global supply chain, and a leading source of international investment capital. For the last two decades, China's sovereign funds have played a significant role in China's economy, mitigating financial crises and tempering exogenous shocks. In this talk, Zoe will discuss how sovereign funds have supported China's industrial policies by financing the state's procurement of strategic overseas assets, bankrolling Chinese enterprises' mergers and acquisitions abroad, and sponsoring the development of indigenous Chinese technology startups. As Zoe makes clear, sovereign funds are not just for oil exports. The CPC is a leader in both foreign exchange reserves investment and economic statecraft, using state capital to encourage domestic economic activity and create spheres of influence worldwide.