Tornado Alley (PROG)

[fuagf]

SoftBank’s Vision Fund sets up investment team in China

Move comes as US regulators step up scrutiny of Masayoshi Son’s links to country

Louise Lucas in Hong Kong and Kana Inagaki in Tokyo December 5, 2018

https://www.ft.com/content/d07e9e48-f869-11e8-af46-2022a0b02a6c

That is directed to this excerpt from the post this post replies to.

"Saudi Arabia Has No Leverage"
[...]
"The Saudi Public Investment Fund — the kingdom’s sovereign wealth fund, which is estimated to have more than $250 billion in assets — is also closely tied to the American economy. To name just a few of its major investments: It put $3.5 billion into Uber in 2016 and almost half a billion dollars in the start-up Magic Leap this year; it invested $45 billion in SoftBank’s Vision Fund, which invests heavily in American technology start-ups; and it made a $5 billion investment with a possible growth to $20 billion in a Blackstone fund for United States infrastructure. Much of the tens of billions of dollars cannot be pulled out on a whim. These start-ups are private companies without open markets for their shares. Prince Mohammed is building a domestic reputation with this tech portfolio, so its success is politically important, too.

All of this is at risk if the dispute worsens between Saudi Arabia and the United States over Mr. Khashoggi’s disappearance. Not only could the Saudis not retaliate because their economy is so intertwined with that of the United States, but they will also be susceptible to pressure. Targeted sanctions — if it comes to that — could force consultants to withdraw or cut off the Saudi Public Investment Fund’s access to the profits of its investments. More likely, though, is that a continuing dispute would force American businesses like AMC to seriously reconsider involvement in the country because of negative publicity."

The US-Saudi leverage teeter-totter has been/still is heavily weighted on the US side. The US is less reliant on Saudi oil than in the past, so
it makes sense Saudi Arabia would look to be getting more investment into China. And developing closer relationship with Russia too. See

Are Putin and Mohammed bin Salman Getting Ready for Another High-Five?
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=145329247