In a recent gathering of Chinese and American financial heavyweights at the Palace Hotel in New York City, China Investment Corp. chairman Lou Jiwel delivered an unambiguous message: “If your Congress passes a bill labelling us as currency manipulators, we will crush you. And because we find your government rather difficult to deal with, please convey that message on our behalf.”
The audience included American billionaire investors such as John Paulson and Henry Kravis, head of KKR, the global buyout firm that is increasing activities in Asia, as reported elsewhere on emergingmoney.com.
However, as the world’s largest exporter with over $3 trillion in foreign reserves — far more than any other country — China certainly carries weight in global matters.
With vast financial resources, China could easily wreak havoc in bond markets already weakened by Europe’s inability to resolve its debt crisis after endless summits.