China’s $1.4 Trillion Wealth Fund Backs ESG
China’s $1.4 trillion sovereign wealth fund is embracing environmental, social and governance investing, as divisions between the U.S. and China grow.
The China Investment Corporation, the world’s second-largest sovereign wealth fund, is increasingly focusing on ESG investing, according to people familiar with the matter. The fund has been looking to hire a head of ESG investing and has been discussing the possibility of setting up a separate ESG team, the people said, asking not to be identified because the information is private.
The move comes as the U.S. and China are locked in a trade war and tensions between the two countries have been rising. The U.S. has accused China of unfair trade practices, while China has accused the U.S. of trying to contain its rise.
ESG Investing Gains Momentum
ESG investing has been gaining momentum in recent years, as investors increasingly focus on the environmental and social impact of their investments. The trend has been driven by a growing awareness of the need to address climate change and other environmental issues, as well as the need to ensure that companies are operating in a socially responsible manner.
The CIC has been looking to increase its focus on ESG investing for some time, according to the people familiar with the matter. The fund has been looking to hire a head of ESG investing and has been discussing the possibility of setting up a separate ESG team, the people said.
The CIC has already made some investments in ESG-focused companies, including a $500 million investment in a Chinese electric vehicle maker and a $200 million investment in a Chinese renewable energy company.
U.S. Divisions Grow
The move comes as divisions between the U.S. and China continue to grow. The U.S. has imposed tariffs on Chinese imports and has accused China of unfair trade practices. China has accused the U.S. of trying to contain its rise.
The U.S. has also taken a hard line on Chinese tech companies, including Huawei and ZTE. The U.S. has accused the companies of posing a security risk and has imposed restrictions on their access to U.S. technology.
The U.S. has also taken a hard line on Chinese investments in the U.S., with the Trump administration imposing restrictions on Chinese investments in U.S. companies.
China’s Response
China has responded to the U.S. actions by imposing its own tariffs on U.S. imports and by taking steps to protect its own tech companies.
The CIC’s move to focus on ESG investing is part of China’s broader effort to protect its own companies and to promote its own interests. By investing in ESG-focused companies, the CIC is helping to promote Chinese companies that are focused on environmental and social issues.
The CIC’s move is also part of China’s broader effort to promote its own interests in the global economy. By investing in ESG-focused companies, the CIC is helping to promote Chinese companies that are focused on environmental and social issues.
Conclusion
The CIC’s move to focus on ESG investing is part of China’s broader effort to protect its own companies and to promote its own interests in the global economy. By investing in ESG-focused companies, the CIC is helping to promote Chinese companies that are focused on environmental and social issues. The move also comes as divisions between the U.S. and China continue to grow, with the U.S. taking a hard line on Chinese tech companies and investments in the U.S.