CLM Insights Interview: Zongyuan Zoe Liu, Author of Sovereign Funds: How the Communist Party of China Finances Its Global Ambitions.

The article is an interview with Zongyuan Zoe Liu, the author of "Sovereign Funds: How the Communist Party of China Finances Its Global Ambitions." The interview discusses China's decision to set up sovereign wealth funds and how their objectives and tactics have changed over time. Initially, the funds were motivated by domestic considerations such as improving financial security and supporting China's development. However, they have since played a significant role in the Chinese economy, financing strategic overseas assets and supporting industrial policies. The article also explores the distinctiveness of China's sovereign wealth funds, their use of leverage, and the competition for control among different bureaucracies. It concludes by discussing how China's sovereign funds have adapted to the changing geopolitical environment, particularly in response to increased FDI screening by Western governments. [Extracted from the article]