US-China Commission Report - Fatal System Error

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121. U.S.-China Economic and Security Review Commission, Hearing on the Implications
of Sovereign Wealth Fund Investments for National Security, written testimony
of Brad Setser, February 7, 2008.
122. U.S.-China Economic and Security Review Commission, Hearing on the Implications
of Sovereign Wealth Fund Investments for National Security, written testimony
of Brad Setser, February 7, 2008.
123. Jamil Anderlini, ‘‘Chinese State Investor Buys Australian Bank Stakes,’’ Financial
Times, January 3, 2008.
124. Jamil Anderlini, ‘‘Beijing Uses Forex Reserves to Target Taiwan,’’ Financial
Times, September 11, 2008; Jamil Anderlini, ‘‘Beijing’s Shadowy Fund for Buying
Assets,’’ Financial Times, September 11, 2008.
125. U.S.-China Economic and Security Review Commission, Hearing on the Implications
of Sovereign Wealth Fund Investments for National Security, written testimony
of Brad Setser, February 7, 2008.
126. U.S. Senate Committee on Banking, Housing, and Urban Affairs, Hearing on
Sovereign Wealth Fund Acquisitions and Other Foreign Government Investments in
the United States: Assessing the Economic and National Security Implications, written
testimony of Edwin M. Truman, November 14, 2007.
127. U.S. Senate Committee on Banking, Housing, and Urban Affairs, Hearing on
Sovereign Wealth Fund Acquisitions and Other Foreign Government Investments in
the United States: Assessing the Economic and National Security Implications, written
testimony of Edwin M. Truman, November 14, 2007.
128. As of July 2008, China held $518.7 billion of U.S. Treasury securities and
around $448 billion of long-term agency bonds. Some experts estimate that China’s
holdings of U.S. securities are actually greater than officially reported. This discrepancy
arises because many U.S. securities are issued directly abroad, which makes
purchaser country attribution difficult. See U.S. Department of the Treasury, ‘‘Major
Foreign Holders of Treasury Securities,’’ September 16, 2008. www.ustreas.gov/tic/
mfh.txt; Brad Setser, ‘‘Too Chinese (and Russian) to Fail’’ Follow the Money blog,
July 12, 2008. blogs.cfr.org/setser/2008/07/12/too-chinese-and-russian-to-fail/; Judy
Chen and Kim Kyounghwa ‘‘China, Stung by Fannie, May Reduce Dollar Holdings,
CICC Says,’’ Bloomberg, September 11, 2008.
129. U.S.-China Economic and Security Review Commission, Hearing on the Implications
of Sovereign Wealth Fund Investments for National Security, written testimony
of Brad Setser, February 7, 2008.
130. U.S.-China Economic and Security Review Commission, Hearing on the Implications
of Sovereign Wealth Fund Investments for National Security, written testimony
of Brad Setser, February 7, 2008.
131. U.S.-China Economic and Security Review Commission, Hearing on the Implications
of Sovereign Wealth Fund Investments for National Security, written testimony
of Brad Setser, February 7, 2008.
132. U.S.-China Economic and Security Review Commission, Hearing on the Implications
of Sovereign Wealth Fund Investments for National Security, written testimony
of Brad Setser, February 7, 2008.
133. Henny Sender, ‘‘Sovereign Funds Cut Exposure to Weak Dollar,’’ Financial
Times, July 16, 2008.
134. U.S.-China Economic and Security Review Commission, Hearing on the Implications
of Sovereign Wealth Fund Investments for National Security, written testimony
of Brad Setser, February 7, 2008.
135. U.S.-China Economic and Security Review Commission, Hearing on the Implications
of Sovereign Wealth Fund Investments for National Security, written testimony
of Brad Setser, February 7, 2008.
136. Rachel Ziemba, ‘‘How is China Funding the Chinese Investment Corporation
(CIC)’’ RGE Analysts’ Economonitor, December 5, 2007. www.rgemonitor.com/blog/
economonitor/230764.
137. Jamil Anderlini, ‘‘CIC Raises Overseas Budget to $90bn,’’ Financial Times,
April 24, 2008.
138. Jamil Anderlini, ‘‘CIC Raises Overseas Budget to $90bn,’’ Financial Times,
April 24, 2008.
139. Congressional Research Service, China’s Sovereign Wealth Fund (Washington,
DC: January 22, 2008), p. 16.
140. ‘‘RMB hits new high against U.S. dollar for 10th time in 2008,’’ Xinhua, February
5, 2008.
141. Jamil Anderlini, ‘‘CIC Raises Overseas Budget to $90bn,’’ Financial Times,
April 24, 2008.
142. U.S.-China Economic and Security Review Commission, Hearing on the Implications
of Sovereign Wealth Fund Investments for National Security, written testimony
of Brad Setser, February 7, 2008.