Sovereign wealth funds (SWF) are widely perceived as politically biased, and this paper
argues that in China they are not only biased but principally serve as instruments of foreign
policy. The text examines ways in which the Chinese use their SWFs, analysing Chinese SWF
investments in terms of value as well as geographical and sectoral distribution (on the basis of
SWF Institute Transaction Database). Also presented are the methods of SWF use to promote
Chinese foreign policy goals: checkbook diplomacy, greater influence, leverage on third
countries, access to sensitive information and building a positive image of China in the world.