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China's Blackstone Buy Shows a New Angle

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China's Blackstone Buy Shows a New Angle

Business

China's Blackstone Buy Shows a New Angle

China's Blackstone Buy Shows a New Angle

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The Chinese government's decision to invest $3 billion into the Blackstone Group investment firm is being seen as the first of an expected onslaught of Chinese investments in the United States — and a sign that China may be growing more sophisticated about U.S. politics.

Some are calling this a turning point.

Here are some of the signs that China was trying to avoid political scandal in the United States: China bought only 10 percent of the Blackstone Group. That happens to be exactly under the amount that would have triggered a congressional review.

China also insisted that its 10 percent purchase come with no voting rights.

The deal comes just before the beginning of high-level economic talks between the United States and China in Washington this week.

In those talks, Treasury Secretary Henry Paulson is expected to press China to let its currency adjust higher while pressing for better enforcement of copyright and patent laws. China insists that it is moving as quickly as it can on these and other matters.

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