(Yicai Global) Nov. 10 -- Goldman Sachs Group, Inc. and China Investment Corp., a Chinese sovereign wealth fund firm, have formed a partnership to jointly set up a China-US industrial cooperation fund with the target amount of USD5 billion, they announced yesterday.
The fund will invest mainly in US firms that have developed or are about to develop business relationships in China and focus on the manufacturing, industry, consumption and healthcare sectors, among others.
This is also a key cooperative financial firuit of US President Trump＇s state visit to China and will help enhance business communication and market access for US-funded enterprises in the country in an aim to strike a balance in the Sino-US trade relationship.
The fund will select US companies as recipients of private equity investment. Goldman Sachs will provide new opportunities for US-funded enterprises to export innovative and competitive products to China with the goal of creating mutual benefits for both China and the US, it said.
China-US relations are one of the most important among great powers in the world, and strengthening economic and trade cooperation is of crucial importance to both economies, said Lloyd Blankfein, Goldman Sachs president and chief executive. The fund will enhance China's investment in the US, create more opportunities for US workers and contribute to China's economic restructuring and growth.
The cooperation will promote China's supply-side structural reform and economic restructuring, while its investment in the US will also bring growth to its business, said Tu Guangshao, vice chairman and general manager of China Investment Corp.
The two sides will also jointly stage the annual Sino-US Business Leaders' Summit to reinforce business cooperation between the two countries, with the first meeting slated to convene in the midwestern US in next year's first half.