Don't fear Chinese investors, fund chief tells EU and US

The head of China's sovereign wealth fund has urged European and US officials not to see Chinese investments as a threat to their national security interests.

Jin Liqun, chairman of China Investment Corporation's supervisory board, told a conference of politicians, security officials and diplomats in Munich on Friday that his country would not put money into "anything sensitive".

The event included senior economic officials from the euro zone such as German Finance Minister Wolfgang Schäuble.

Jin said his fund thought it was "a very good time to invest in this part of the world".

There was "no reason why we should be pessimistic about Europe", he said. "But I hope you will be open. You should not be obsessed with so-called national security.

"Let me assure you we will not touch anything which is sensitive, we will not do anything in any sector, or work with any company in Europe or in the United States which would imply national security for you."

He cited his fund's investments in Heathrow Airport and utility Thames Water, both in London.

Some Americans were surprised that Britain allowed China to take major stakes in such strategic businesses, he said.

"Some people say, 'Are you afraid of the Chinese poisoning the water?' That would be crazy," he said.

"We are financial investors. We give you the money, we put our money in any company without meddling with your management."

Jin said the main problem for the European Union's single currency zone in tackling the sovereign debt crisis was to muster enough political will to carry out unpopular reforms, especially changes that would affect the job market.

"In spite of demonstrations in some cities like Athens or Madrid, I believe, through my research, that the mainstream, the general public, are supportive of the austerity measures," he said.