A Chinese government entity has acquired a sizable stake in BP, one of the world’s biggest oil and energy companies, for about $2 billion.
The investment is the latest indication that China, flush with cash from its booming economy and its huge currency reserves, is becoming an increasingly important global investor and that it has already begun focusing on the world’s most recognizable brands.
A spokesman for BP said that over the last six months an unidentified Chinese entity had acquired a one percent stake in the oil company, which is valued at over $200 billion.
Specialists say the investment probably came from one of two places, either the State Administration of Foreign Exchange, an arm of the Central Bank that manages China’s massive foreign exchange reserves, or the China Investment Corporation, the country’s $200 billion sovereign wealth fund.
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