60 minutes interviewed the head of China’s sovereign wealth fund and caused quite a stir. A key thesis is that China is singled out because it has historically been sneaky and secretive. So presumably we might wake up one day and have China controlling the board of some of our largest companies/industries. The anchor calls for more transparency from the fund – but she is implying is that China’s sovereign fund should be regulated and restricted from gaining too much control (otherwise, what good is transparency ?).
I am disturbed by the episode, and I am disappointed with 60 minutes for producing such a one-sided argument. I am worried that media reporting like this will stir up resentments between US and China. Not between the two governments, but among the citizens. I am also worried that the US is moving backwards, slowly drifting back to a regulated and closed economy.
And, where will we draw the line? If it is not sovereign funds, what about hedge funds with PRC investors? What about PRC companies? What about companies with a Chinese CEO? What about companies with a Chinese American CEO? It’s a dangerous path to go down.
