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A Chinese sovereign wealth fund has built a stake of about £1 billion in BP, accumulating just under 1 per cent of the oil group.
The British Government is understood to be monitoring the situation closely.
The fund has also built an interest in Total, the French oil giant, according to reports.
It was revealed this month that the State Administration of Foreign Exchange had amassed a 1.6 per cent stake in Total worth €1.8billion (£1.4 billion).
However, the Government is actively seeking greater trade ties with China.
Alistair Darling, the Chancellor, is scheduled to meet Lou Jiwei, the head of the Chinese Investment Corporation, another sovereign wealth fund, in Beijing this week.
BP has several other sovereign wealth funds on its share register, including the Kuwait Investment Authority.
Meanwhile, Shenhua Energy, the Chinese coalmining group, denied a report yesterday that it planned to buy a stake in the mining company Anglo American and dashed speculation that it was among a group said to be interested in the miner BHP Billiton.
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Funny how nationalised industry and banking was a bad thing (so we privatised everything). However, if it is another nation doing the 'ising', then it's fine.
Trevor, Hampshire,
The Chinese have to invest in equties around the world
because in ten years time they will face a population problem,
lots of people retiring and due to the one child policy, not
enough workers to pay pensions, so they will need money
from these investments to keep things going. Also with less
workers Chinese business will probably start re-locating some of their factories to Vietnam, Burma and other countries
with low wage economies. All this will bring more wealth and
opportunity to Asia. China is totally tied into the world capitalist
economy....difficult for me to see them as a threat.
Roger, Weymouth, UK
Did world governments think the Chinese were going to sit on a over a trillion dollars worth of currency holdings forever did they ?
All those throw-away plastic toys and cheap flat screen TVs are now being converted into hard assets in the west, its what happens when you run massive trade imbalances for decades.
Gavin, London, UK
So that is why Brown went to China.
To offer BP to the Chinese.
Leo, Birmingham, England