China CP

China Investment CP – 1NC

Text:

Expansion of the PPP with CCA can provide finding and needed expertise for US infrastructure projects.

Yuwei, 12

[Zhang, Chinese funds could help strengthen US infrastructure, 2-14-2012, http://usa.chinadaily.com.cn/epaper/2012-02/14/content_14606475.htm, sh]

NEW YORK With Chinese investment into the United States increasing, Chinese companies' assistance in rebuilding the crumbling infrastructure system in the US comes at an opportune time. In the 2013 budget US President Barack Obama sent to Congress on Monday, he proposed more than $350 billion in short-term measures for job growth, including an investment of $50 billion from the surface transportation reauthorization bill for roads, rails, and runways to create new jobs. Obama has, on many occasions, stressed the need to rebuild America's crumbling infrastructure. "Building a world-class transportation system is part of what made us an economic superpower," said Obama in a speech last year on job creation. He added that the US cannot "sit back and watch China build newer airports and faster railroads." China, on the other hand, has embarked on a fast lane of building its infrastructure in the past few years. Many say this is something China can definitely teach the US. Francis Fukuyama, a fellow at the Freeman Spogli Institute for International Studies at Stanford University, in his Financial Times piece, argued "the most important strength of the Chinese political system is its ability to make large, complex decisions quickly, and to make them relatively well, at least in economic policy." This, he wrote, is most evident in the area of infrastructure. "Americans pride themselves on constitutional checks and balances, based on a political culture that distrusts centralized government," he wrote. China's helping role in helping almost sounds perfect because it can provide expertise and, most importantly, capital what the US needs most in various infrastructure projects. In Beijing, four new subway lines will start operating later this year, making the city's total length of the subway lines exceed 450 kilometers. That number will allow Beijing to reach the international standard of having a "real subway network". Across China, other examples include the high-speed rail, newly built airports, train stations and other infrastructure projects coming soon. In the New York tri-state metropolitan area, just two years ago New Jersey canceled a project that would have built a new tunnel between New Jersey and Manhattan in order to close short-term budget gaps. Commuters currently take trains that share a tunnel under the Hudson River with Amtrak, the national rail carrier, running on two tracks built in 1910. Last year, Obama proposed $80 billion for infrastructure, $30 billion of which is for repairing and renovating schools and $50 billion for other infrastructure projects. However, that number pales in comparison to what China has committed to its infrastructure. China's Ministry of Railways said that it will spend about $300 billion in building transportation systems through 2020, while the US Federal Railroad Administration said it would commit about $8 billion in similar projects. Yuan Ning, president for China Construction America (CCA), a wholly owned subsidiary of China State Construction Engineering Corporation (CSCEC), said the perfect way for China and the US to collaborate is through the Public-Private Partnership, or the PPP, for infrastructure projects. The PPP is a government service or private business venture, which is funded and operated through a partnership of the government and one or more private sector firms. Yuan said Chinese companies working through the PPP with the US government and private sectors is a "win-win solution". Robert Hormats, US under secretary for economic growth, energy, and the environment, agrees that the PPP is a good way to work with the Chinese companies in infrastructure projects. "Chinese investment can be really helpful. We would love to have more of that and we will be pursuing that dialogue with the Chinese," Hormats said after a business event in New York on Feb 1. Chinese companies not only see the opportunity but also have shown a commitment to be a part of this growth. CCA's parent company CSCEC recently said it will invest $2 billion in the next few years in the US market for PPP infrastructure projects, mergers and acquisitions and residential projects. Joe Catapano, a project manager with CCA, said the expertise and capital Chinese companies can provide is important. "The key issue is money. It doesn't seem the United States government is willing to spend money (on building infrastructure). There isn't a lot of financial support for a lot of infrastructure work that needs to be done," said Catapano, who has 12 years of engineering experience in New York and California. "High-speed rail is definitely something we can learn from China. We don't have any of that in the US, anywhere," he added.

CP solves AFF jobs and industryoo arguments.

China Daily, 12

[Chinese Working to Reconstruct America, 3-11-2012, http://newamericamedia.org/2012/03/chinese-working-to-reconstruct-america.php, sh]

For a Chinese construction company to compete in the U.S. market and undertake these big public projects, the challenges can very well be imagined. Yuan admitted the difficulties, but he believes in expertise, hard work and a willingness to give the lowest bidding price. Over the past 10 years, China Construction America has grown from about a dozen employees to today's 1,000 in the US. Ninety percent of the staff, according to Yuan, are local hires. Joseph Catapano, a project manager who oversees the Staten Island Expressway site, said he feels "very privileged" to work for the company. "It's a very good opportunity for me and I see myself working here until I retire," said Catapano, who has 12 years of engineering experience in New York and California. "We only employ union workers at our New York job sites," said Yuan, adding the company agreed to follow the "Buy America" rule for the Alexandra Hamilton Bridge project as one condition prior to the bid. "Buy America" requires the U.S. government to prefer US-made products in its purchases. In this case, companies that win bids should only use U.S,-made products, such as steel. Yuan said after so many years, China Construction America is ready to take on different projects, and maybe even go back to residential projects. Starting this year, its parent company is planning to invest $2 billion in the U.S. market to boost its investment in public-private partnerships, infrastructure development, mergers and acquisitions and residential projects. "We have an advantage to help the US build its infrastructure projects. We can bring money and our connections established with both Chinese and foreign banks (to generate the capital) and of course our expertise," Yuan said, calling it a "win-win solution."

Extensions

Solves – IBUS

China will fund a US infrastructure bank

Richter 11 (Stephan Richter March 16, 2011 “Yes, There Will Be a U.S. Infrastructure Bank”, http://www.theglobalist.com/storyid.aspx?StoryId=9039, 7/5/12, CF)

These leaders know that the fates of the United States and China are joined at the hip. With over $1 trillion in U.S. Treasury holdings, the Chinese government has a vested interest in the future performance of the United States. A country eating its seed corn by not investing enough in public infrastructure and instead relying on the inherent "wisdom" of private investors is a cause for concern. At the same time, the Chinese feel that they cannot in good conscience invest in more Treasury paper. What’s the point, they ask, in funding a defense budget the United States could not otherwise afford — or bankrolling cash-flow deficits in the Social Security accounts of the baby boom generation? Given all that, China's leaders must be pondering a truly revolutionary thought: How about using their dollar-denominated funds to capitalize an Infrastructure Bank for the United States (IBUS), as well as underwriting many of its upcoming investment projects? At first glance, such a step would seem a heretical move for China's still-communist leaders. However, today’s alliances are no longer so much a matter of ideology, but of cash-flow recycling and balance sheet optimization.

Solvency – General

Chinese PPPs solve for US infrastructure – speed and cost

Rapoza 12 Kenneth [Forbes contributor] “To Rebuild America, Call On China?” Forbes 2/14/12 accessed: 7/5/12 http://www.forbes.com/sites/kenrapoza/2012/02/14/to-rebuild-america-call-on-china/ DR

China’s Vice President Xi Jinping has at least one good sales pitch to offer Americans during his five day stay; to rebuild old infrastructure, count on us. Surprisingly, Washington is listening. On Tuesday, Xi signed a statement in the White House with Joe Biden where both leaders stated their recognition for Chinese firms “to play a positive role in infrastructure financing.” Yuan Ning, president for China Construction America (CCA) told China Daily on Tuesday that the perfect way for China and the U.S. to collaborate on much-needed infrastructure projects is through Public-Private Partnership, government funded projects operated by private partners. Chinese companies, he said, are standing by. Robert Hormats, U.S. under secretary for economic growth, energy, and the environment, also told the paper that he agreed; China could invest through public-private partnerships in American infrastructure. “Chinese investment can be really helpful. We would love to have more of that and we will be pursuing that dialogue with the Chinese,” Hormats said after a business event in New York earlier this month. It’s already happening, though very slowly. CCA’s parent construction company plans to invest $2 billion in the next few years in U.S. infrastructure projects, mergers and acquisitions and residential development. Joe Catapano, a project manager with CCA in the U.S., said the expertise and money that Chinese companies can provide is important to rebuild and renovate. “The key issue is money. It doesn’t seem the United States government is willing to spend money. There isn’t a lot of financial support for a lot of infrastructure work that needs to be done,” said Catapano. “High-speed rail is definitely something we can learn from China.” By comparison, China’s Ministry of Railways is going to spend $300 billion on transportation systems through 2020. The U.S. committed about $8 billion in similar projects. Still, Amtrak’s high speed Acela train here in the 21st Century loses power while “racing” through Connecticut from New York City to Boston because the tracks are not upgraded to take the train to its full 150 miles per hour potential. In 2010, the New Jersey state government canceled the Hudson River rail project that would have built a new tunnel between New Jersey and Manhattan. The state didn’t have the money. So commuters are riding on a mix of old and newer trains that share a tunnel under the Hudson running on two tracks built as recently as 1910. Meanwhile in Beijing, four new subway lines will start operating later this year, making the city’s total length of the subway lines exceed 279 miles of track, a lot of if brand spanking 21st Century newness. New York City has 842 miles of subway tracks. (Take THAT, China!) Most of it old and obnoxiously loud. (But, hey, it works. Love the 6.) It’s not that the U.S. has forgotten it needs to fix roads and bridges, or that millions of people actually ride trains from the Mi-Atlantic to New England every day. Things like private-public partnerships take years, and a dozen committee meetings, to develop. In one party China, the government orders projects, pays for them, and there is no opposition. Washington gets a C grade for trying, at least. In the new 2013 budget, one of Obama’s proposals includes $50 billion for surface transportation, which would require the re-authorization of the highway act in an election

PPP’s are empirically involved in infrastructure.

CQ Congressional Testimony 07 (February 13, 2007, “Statement of Alistair Sawers Director RBC Capital Markets Committee on House Transportation and Infrastructure Subcommittee on Highways, Transit and Pipelines”, CQ Congressional Testimony, LexisNexis, 7/5/12, CF)

Good morning, Mr. Chairman, Ranking Member Duncan and Members of the Committee. My name is Alistair Sawers and I hold the title of director at RBC Capital Markets where I head the Western region of the Infrastructure and Project Finance Group. It is my pleasure to discuss with you today the experience of other jurisdictions, particularly in Europe, in protecting the public interest while carrying out public-private partnership (PPP) programs. In the last 13 years I have had the privilege of advising either the Public or Private sectors on over 40 PPP procurements in 12 different countries including the UK, Canada, Spain, Portugal, Sweden, Chile and the Russian Federation as well as in 5 different States in the US. My remarks today will be focused on public policy issues that arise in these transactions and the approaches to resolving these issues adopted in other jurisdictions. My remarks will focus primarily on use of PPPs to provide the design, construction, financing, and operation and maintenance of new facilities. PPPs: Protecting the Public Interest - the International Experience Defining the concepts Defining Public Private Partnerships .. Public Private Partnership ("PPP") relationships are very different from privatization, in which the market and price mechanism defines the service provided. The private sector has always been involved in the building and maintenance of public infrastructure. PPP ensures that contractors are bound into long-term maintenance or operating contracts and take responsibility for the quality of the work they do. With PPP, the public sector defines what is required to meet public needs and remains the client throughout the life of the contract. The public sector also ensures, by contract, delivery of the outputs it sets and has rights under those contracts to change the output required from time to time. In a PPP, the government role changes from that of directing and managing infrastructure to one of oversight and maintenance of quality service outcomes. .. The term PPP covers a broad spectrum of Private involvement in the procurement of Infrastructure which is summarized for reference in the table below. It does highlight that the default method of procurement in the majority of international jurisdictions is Design Build. As a result most international comparisons between PPPs and conventional procurement are comparisons with Design Build.

Solves - Rails / Roads

PPPs can solve for rail, sea, air, public transit and road infrastructure

Puentes 12 (Robert Puentes Senior Fellow Metropolitan Policy Program, April 11, 2012, Fifth U.S./China Investment Forum, U.S. Department of Treasury, “New Approaches for Infrastructure Finance: State and Local Perspective”, http://www.brookings.edu/research/testimony/2012/04/11-infrastructure-finance-puentes, 7/5/12, CF)

However, in the absence of congressional action, states and localities are stepping in to finance the kind of major investments necessary to support the next economy. States and municipalities retain primary authority over selection, design, and control of the vast majority of infrastructure projects. How choices are made about which to fund is exceedingly complex and depends on funding sources, jurisdictional concerns, and political negotiations. Federal dollars for transportation and water mostly flow to the states who then work with their municipal counterparts to decide on specific investments. For transportation, this is also done in partnership with other entities on the metropolitan level such as the 400 metropolitan planning organizations and the multitude of special purpose bodies such as sea, airport, and toll road authorities and public transit agencies. Other areas of infrastructure, such as energy, telecommunications, and freight rail investments, are dominated by the private sector typically with federal and state regulatory oversight (see figure.) Public and Private Shares of Spending on Infrastructure, 2007[4]

China makes bridges and highways better than the US – good decisions

Yuwei 12 Zhang [writer for China Daily] “Constructive partnership will build foundations” China Daily 3/6/12 accessed: 7/5/12 http://www.chinadaily.com.cn/cndy/2012-03/06/content_14762837.htm DR

"In order to do this efficiently and safely, we need the administration and Congress to come together on a well-funded multiyear highway bill that makes smart investments in roads and bridges with real dollars," he said in response to Obama's State of the Union speech in January, which called for rebuilding US infrastructure. Money matters China State Construction Engineering Corp entered the US market in 1985 and its US operation China Construction America is well known by locals. In New York, CCA is renovating Alexander Hamilton Bridge (between Manhattan and the Bronx) and reconstructing the Staten Island Expressway. It is also building North Charleston Coliseum and River Bluff High School in South Carolina. Its parent company recently announced a plan to invest $2 billion in the next few years in PPP infrastructure projects, mergers and acquisitions, and residential projects. Joe Catapano, a project manager for CCA working on the Staten Island Expressway, said Chinese companies offer capital and expertise. "The key issue is money. It doesn't seem the US government is willing to spend money (on building infrastructure)," said the engineer, who has 12 years of experience working in New York and California. "There isn't financial support for a lot of the infrastructure work that needs to be done. "High-speed rail is definitely something we can learn from China. We don't have any of that," he added. The first US high-speed rail line is likely to be in California, with delayed construction of a 350 km/h system to begin in Fresno this year. California is home to six of the country's 10 most congested metropolitan areas, while the state's population is predicted to grow by more than 20 million in the next four decades. The California High-Speed Rail Authority estimates that without the new rail system, the state would need to invest $171 billion to acquire the equivalent transport capacity 2,300 miles of new highway, 115 new airport gates and four new runways. Many American scholars say the Chinese government makes decisions quickly on infrastructure construction and acts effectively. Thomas Friedman, the New York Times columnist and co-author of That Used to Be Us, argued in 2008 that it is time to "reboot America", citing the need to catch up with the advanced airports and rail stations he saw on a visit to China. Francis Fukuyama, a fellow at the Freeman Spogli Institute for International Studies at Stanford University, wrote in a Financial Times piece that the "most important strength of the Chinese political system is its ability to make large, complex decisions quickly, and to make them relatively well, at least in economic policy". This is most evident in the area of infrastructure, he wrote, adding: "Americans pride themselves on constitutional checks and balances, based on a political culture that distrusts centralized government."

Solves – Economy

China funding infrastructure key to economy

Richter 11 (Stephan Richter March 16, 2011 “Yes, There Will Be a U.S. Infrastructure Bank”, http://www.theglobalist.com/storyid.aspx?StoryId=9039, 7/5/12, CF)

While the investment needs within China remain big, the country’s leaders do have a plan in place to fund them for decades. Whatever happens at home, they also have to make rational use of all the U.S. dollars they earn from exports to the United States. What nobler, more rational and long-term-oriented purpose than to fund the IBUS? China, after all, is a rapidly aging nation, with lots of financing needs to support its large population in old age. How better to meet those needs than by investing in a demographically young nation now (the United States) — and then waiting for the returns on that investment to flow back to China over time? Not even the Chinese military could be opposed to this plan. While it might superficially be seen as a self-defeating, if not traitorous, act to strengthen one's primary opponent, those generals are business savvy these days. While the generals in China, as well as the leaders of the Chinese Community Party, may well be ready to underwrite the IBUS, U.S. politicians can be counted upon to go apoplectic if such a proposal were ever to come to pass. Still, it might turn out that China's plan for a truly stunning foreign mission to rebuild U.S. infrastructure will come to pass one way or another. In the end, it will be an amazing moment in the annals of global capitalism when China — presumably the developing country, but really an old, mature power thinking about the global system and its own needs in a very long-term manner — will come to the aid of that upstart, the United States. A country eating its seed corn by not investing enough in public infrastructure and instead relying on the inherent "wisdom" of private investors is a cause for concern. While being presumed to be a mature industrial democracy, the United States really is a youngish country — and one that still has to contend with its errant ways. But “Uncle Wen,” his colleagues and successors have a clear and comforting message for Washington and the entire United States: “Don't worry, America. From our own history, we know about losing one's path and how painful it can be for a country and its entire population — and also the world. “We Chinese,” Premier Wen Jiabao says when he is daydreaming, “are here to help. Let's hope you Americans are enlightened enough to accept our assistance. “Otherwise, you Americans will be in for a serious detour, one that will not only shortchange the future prospects of many Americans, but of the entire world economy. Let's hope that outcome can be avoided.”

Counterplan solves economic stagnation

Hill 12 Terry [Chairman of the Arup Trust heading the Board of Trustees Formerly I held the position of Arup Group Chairman (2004-2009) responsible for the overall strategic direction of the firm] “Investment takes economics centre stage” Arup 6/14/12 accessed: 7/5/12 http://thoughts.arup.com/post/details/214/investment-takes-economics-centre-stage DR

The previous week, it was the International Monetary Fund making a similar recommendation as chief executive, Christine Lagarde, said more investment “would be a good use of the hard-won credibility of fiscal policy”. Before that, we witnessed stimulus packages for infrastructure investments in the USA and elsewhere. And even the Chinese have stated they plan to up their investment profile both at home and abroad as concerns about growth re-emerge after a recent period when China’s leaders were more focused on inflation and potential overheating in the economy. The case for massive infrastructure investment is not quite unanimous, but momentum is certainly building behind the idea that far more investment is urgently required to prevent widespread stagnation. The main argument left now centres on how such investments should be financed and how to maximise public funding and private finance.

Solvency – Pipeline

China can build pipelines – certified for North America

CSCEC 12 [China State Construction Engineering Corp] “China Construction Installation Gets Certified for ASME” China State Construction 3/22/12 accessed: 7/5/12 http://www.cscec.com/en/tabid/242/InfoID/6964/frtid/242/Default.aspx DR

On March 22, 2012, the Joint Inspection Team authorized by ASME Headquarters in US declared that China Construction Industrial Installation Co., Ltd (“China Construction Installation” in brief) had passed the inspection of ASME and got certified. ASME is the abbreviation of American Society of Mechanical Engineers. The “ASME Code” is currently the world acknowledged reliable boiler and pressure vessel code. The boiler and pressure vessel certification, in addition, is one that should be the most authoritative and universally recognized in the world. It is a norm and a pass for those entering the international pressure vessel markets and power pipeline markets. The certification of ASME of China Construction Installation signifies its management and technical condition having fulfilled the requirement for its products to go to world markets. It also means a “Green Pass” has been obtained for the export of its products to global markets, in particular, North America.

AT: China DA’s Thumper

States already do PPPs – 24 states

Puentes 12 (Robert Puentes Senior Fellow Metropolitan Policy Program, April 11, 2012, Fifth U.S./China Investment Forum, U.S. Department of Treasury, “New Approaches for Infrastructure Finance: State and Local Perspective”, http://www.brookings.edu/research/testimony/2012/04/11-infrastructure-finance-puentes, 7/5/12, CF)

On the local level, Mayor Rahm Emanuel recently announced the creation of the Chicago Infrastructure Trust (CIT) as a market-oriented institution that attracts private capital interested in steady returns and makes investment decisions based on merit and evidence rather than politics. Like California's I-Bank it cuts across different types of infrastructure such as transportation and telecommunications, and like Connecticut's Green Bank it emphasizes the generation, transmission, and adoption of alternative energy. The CIT will be capitalized through direct investments from private financing organizations some of which have already expressed interest that could reach $1 billion or more in total investment capacity. The Chicago plan highlights an important point with respect to differences among states and municipalities in the U.S. today. While some states and cities are ambitiously pursuing innovative sources of infrastructure finance-such as partnerships with private and foreign investors-many others are not. For example, only 24 states undertook at least one public/private partnership (PPP) transportation project since 1989. Florida, California, Texas, Colorado, and Virginia alone were responsible for 56 percent of the total amount of all U.S. transportation PPP projects during this time.[6]

AT: Not Popular

Both the US and China like the counterplan

Department of the Treasury 12 “Joint U.S.-China Economic Track Fact Sheet- Fourth Meeting of the U.S. China Strategic and Economic Dialogue (S&ED)” U.S. Department of Treasury 5/4/12 accessed: 7/5/12 http://www.treasury.gov/press-center/press-releases/Pages/tg1567.aspx DR

The U.S. Government’s SelectUSA program assists current and prospective investors in the U.S. market, including Chinese enterprises, and takes on increased responsibilities for the promotion of this investment. SelectUSA commits to assist with introductions between economic development officials and Chinese enterprises and government officials interested in exploring investment opportunities in the United States, and work to ensure that Chinese enterprises have the information they need to invest in the United States. The United States supports improving its infrastructure sector, enhancing market mechanisms for infrastructure investment, incorporating best practices and lessons learned from all applicable global infrastructure systems, and working to enhance Public-Private-Partnership (PPP) investment opportunities where appropriate, including from foreign investors. In recognition of this goal, President Obama’s FY 2013 Budget proposes a plan to renew and expand America’s infrastructure systems and calls for the creation of a National Infrastructure Bank to enhance investment opportunities for all public and private capital to invest in transportation, water, and energy infrastructure sectors. The United States and China recognize the potential for their firms to play a positive role in infrastructure financing in each country, and commit to explore opportunities for deepening cooperation in this field. The Chinese Government commits to developing a market environment of fair competition for enterprises of all kinds of ownership and to providing non-discriminatory treatment for enterprises of all kinds of ownership in terms of credit provision, taxation incentives, and regulatory policies.

AT: Buy America / American Jobs

Not unpopular, hires only local, Union workers

Yuwei 12 Zhang [writer for China Daily] “Constructive partnership will build foundations” China Daily 3/6/12 accessed: 7/5/12 http://www.chinadaily.com.cn/cndy/2012-03/06/content_14762837.htm DR

"Many US subsidiaries of foreign firms have been very successful here on projects," he told China Daily by phone. "Chinese firms are no different. So there are all kinds of companies from around the world that have established US subsidiaries that bid on and win projects." However, the involvement of Chinese companies in helping to rebuild US infrastructure is not necessarily popular. Last year, when California's transport department chose Shanghai Zhenhua Heavy Industries Co China's largest heavy-machinery maker to build the new San Francisco-Oakland Bay Bridge, US industrial groups did not react well. Luis Alejo, a California assemblyman, said the decision to outsource the project to China had done damage to the state. "It gives thousands of (US) families those jobs, and then those pay checks and their subsequent spending ends up going back into our (the US) economy. And so now all that money has permanently disappeared from California," he said in an interview with NPR. Californian officials who were involved in the project, however, believe it was the right way to go, as Zhenhua, which has built some of China's largest bridges, has the expertise and lower cost. The cost of the project was about $7.2 billion, and having the Chinese contractor build it saved about $400 million (by outsourcing the fabrication of key sections of the Bay Bridge and having other work done locally), according to Tony Anziano, a manager at the California transport department. Many still see it as a way to "outsource jobs" to China. Scott Paul, executive director of the Alliance for American Manufacturing, said the US is subsidizing jobs in China by giving them infrastructure projects. "We are not creating any wealth in the US," he said. Meanwhile, Alaska Iron Workers declared in a recent radio advertisement, "This is not the time to send more jobs to China." Yuan at CCA said he believes this is a misunderstanding, explaining that his company complies with the "Buy America" sentiment just like any other bidder. "We offer competitive prices and world-class expertise for all the projects we bid for," he said, adding that 90 percent of his company's 1,000-strong workforce in the US are local hires. "We only hire local workers for our job sites across the country," he said. "In New York, we only hire union workers, and we have created thousands of jobs over the years."

SORTING

Investment k2 diversification???

Levitt, 11

[Aaron, ndependent investment writer and analyst living in State College, Pennsylvania, China Gets Serious About U.S. Infrastructure, Investopedia, 12-19-2011, http://www.investopedia.com/stock-analysis/2011/China-Gets-Serious-About-U.S.-Infrastructure-GII-FLM-BGC-ABB-ETN-VMI-HOLI-GRID1218.aspx#axzz1znN3jYR5]

After spending record amounts on its own infrastructure build-out, China could be ready to assist the developed west. The $410 billion Chinese Sovereign Wealth Fund (CIC) now plans to invest in the infrastructure of developed countries, starting with the United Kingdom. A variety of Chinese officials have been demanding that the nation begin diversifying the country's $3.2 trillion worth of foreign exchange reserves into real assets. Already, China has begun buying gold in spades. The next logical step would be real estate and infrastructure assets in the developed world.