Chinese wealth fund targets Asia (2)

The US House of Representatives' Intelligence Committee warned last month that Beijing could use equipment made by Huawei, the world's second-largest maker of routers and other telecoms gear, as well as rival Chinese manufacturer ZTE, the fifth largest, for spying.

Canada has twice delayed a decision over whether to allow a $15.1 billion bid by CNOOC Ltd, China's top offshore oil and gas producer, for Nexen Inc, despite shareholders giving it their backing.

Having tackled some concerns about acquisitions by sovereign wealth funds, such as CIC, in 2008 through the adoption of guidelines brokered by the International Monetary Fund, known as the "Santiago Principles", governments worldwide now bristle at the rising number of investment bids for strategic assets made by State-backed firms that fall outside that framework.

Lou said CIC would not change its strategy of partnering with Chinese firms simply to assuage concerns of foreign regulators - particularly if such a partnership presented the best-value proposition to the fund, which is mandated to boost returns on a substantial chunk of China's $3.29 trillion stash of foreign reserves.

"We would avoid investing in countries that do not welcome us. There are other places to invest," Lou said.