“A fascinating insight into the evolution of China’s financial policy and its strategic investments using leveraged foreign exchange reserves.” ―Diane Coyle, Enlightened Economist  “[Liu] shows that Chinese sovereign funds are so different from better-known sovereign wealth funds, such as those of the governments of Abu Dhabi and Norway, that she prefers to call them ‘sovereign leveraged funds’...These various exotic workarounds, which Liu skillfully traces, produce ‘shadow reserves.’” ―Andrew J. Nathan, Foreign Affairs   “Follow the money, find the politics...Liu shows how China pioneered a whole new class of sovereign wealth funds.” ― Times of India   One of the keys to China’s global rise has been its strategy of deploying sovereign wealth on behalf of state power. Since President Xi Jinping took office in 2013, China has doubled down on financial statecraft, making shrewd investments with the money it has made by leveraging its foreign exchange reserves. Sovereign Funds tells the story of how the Communist Party of China (CPC) became a global financier of surpassing ambition.  Zongyuan Zoe Liu offers a comprehensive and up-to-date analysis of the evolution of China’s sovereign funds, including the China Investment Corporation, the State Administration of Foreign Exchange, and Central Huijin Investment, showing how these institutions have become mechanisms not only for transforming low-reward foreign exchange reserves into investment capital but also for power projection. Sovereign funds are essential drivers of the national interest, shaping global markets, advancing the historic Belt and Road Initiative, and funneling state assets into strategic industries such as semiconductors, fintech, and artificial intelligence. Liu uncovers how the CPC is a leader in both foreign exchange reserves investment and economic statecraft, using state capital to encourage domestic economic activity and create spheres of influence worldwide. “[ Sovereign Funds ] takes up a particular aspect of China’s economic statecraft, showing how it employs its financial resources to promote its interests abroad…Give[s] us a much better understanding of what needs to be done to restrain China abroad.” ― Edward Chancellor , Wall Street Journal “Revealing…It describes the personalities, facts and figures that undergird the labyrinthine and often secret world of Chinese state money and the strategies that Beijing deploys to secure strategic assets around the world.” ― James Kynge , Financial Times “Liu, an expert on international political economy at the Council on Foreign Relations, shows how the Chinese Communist Party (CCP) uses ‘sovereign leverage funds’ to promote fiscal security at home and geopolitical influence abroad.” ― Francis P. Sempa , New York Journal of Books “ Sovereign Funds raises broader questions about the presence of such funds in the financial system and the role that can be played by state finance in the global marketplace…It offers an insightful look into the permutations of the Chinese state in response to privatisation.” ― Seth O'Farrell , fDi Intelligence “This book is an important contribution as it delivers an urgently needed in-depth analysis of Chinese SLFs. [It] adds an important dimension to the analysis of China’s economic statecraft.…[and] can serve as a playbook for Western political decisionmakers that intend to create their own SLFs.” ― Andreas Fuchs , China Quarterly “[Liu] shows that Chinese sovereign funds are so different from better-known sovereign wealth funds, such as those of the governments of Abu Dhabi and Norway, that she prefers to call them ‘sovereign leveraged funds’…These various exotic workarounds, which Liu skillfully traces, produce ‘shadow reserves.’” ― Andrew J. Nathan , Foreign Affairs “A fascinating insight into the evolution of China’s financial policy and its strategic investments using leveraged foreign exchange reserves.” ― Diane Coyle , Enlightened Economist “[An] erudite analysis of China's major sovereign funds...The book also enriches our appreciation of the strengths and weaknesses of Chinese economic (especially financial) statecraft...It makes a major contribution to our knowledge about how the country uses its wealth to pursue its domestic and foreign policy goals.” ― Hongying Wang , International Affairs “Represents a truly groundbreaking research effort. Relying on open-source materials and field interviews, the author shows how China leverages its foreign exchange reserves to advance politically important projects.” ― Minxin Pei , Project Syndicate “Follow the money, find the politics…Liu shows how China pioneered a whole new class of sovereign wealth funds.” ― Times of India “A novel and fascinating history of China’s rich and powerful sovereign wealth funds, which play an outsize role in the country’s strategy for both international development and external influence.” ― Kenneth Rogoff, Maurits C. Boas Chair of Intern