G ao Xiqing, the president of China Investment Corpora- tion, China's sovereign wealth fund, spoke last week of his frustration that CIC's attempts at investing outside China sometimes ran into political opposition. He went on to add, in words that should act as a chilling wake-up call to many politicians and bankers: "Fortunately there are more than 200 countries in the world. And fortunately there are many countries who are happy with us."

I have known CIC since it bought a 9.4 per cent non-voting interest in Blackstone when we went public last year. The fact that its president publicly suggests that CIC may invest only where it feels welcome - a view I know many other SWFs share - has serious implications for the economic wellbeing of the US and other western countries where political opposition to SWF investments has mounted.