The head of CIC (China Investment Corporation), Lou Jiwei, stated that they are thinking about ways to invest in the UK’s infrastructure development as are they interested in investing in other private/public partnerships in other countries that are developed as well. This is good news for the British government which has been looking for ways to upgrade their transportation network to help promote growth. The CIC is the main sovereign wealth fund in China.
Lou stated that the CIC believes that a proper investment, that has commercial principles behind it, would offer a great solution for all parties. There have been many concerns about the economy slowing down on a global scale due to the European debt crisis that appears ongoing and the lowered rate of growth in the US, which is faced with unemployment rates that continue to increase.
Lou addressed this issue by stating that as the issues continue to reduce growth economies that are developed, their investment could help boost their infrastructure spending to help increase demand. He also suggested that authorities need to get more investment into their countries by offering bank loans to applicable lenders at discounted rates and reducing the amount of taxes imposed on oversea investments.
If this were done, he said it would increase demand for the manufacturing of equipment helping to get more people jobs and reduce the amount that overburdened governments are paying out on unemployment spending. David Cameron, the Prime Minister of the UK has already promised to get infrastructure projects started.