CIC: China ready to invest in ageing Western infrastructure

CHINA is keen to invest in the ailing infrastructure of Western countries, especially Britain, the chairman and chief executive of the Asian country’s sovereign wealth fund wrote in the Financial Times.

“Now, infrastructure in Europe and the US badly needs more investment,” China Investment Corporation’s (CIC) Lou Jiwei wrote.

He said while China had traditionally confined itself to the role of contractor in overseas infrastructure projects, the country’s investors now saw a need to invest in, develop and operate such projects.

“In a sign of this determination, the China Investment Corporation... is now keen to team up with fund managers or participate in public-private-partnerships (PPP) in the UK infrastructure sector as an equity investor,” Lou wrote.

“CIC believes that such an investment, guided by commercial principles, offers the chance of a ‘win-win’ solution for all.”

Local co-investors need to provide knowledge for infrastructure projects while the government must encourage domestic players to head them, Lou wrote.