With the creation one year ago of a $200 billion sovereign wealth fund, the China Investment Corporation, Beijing positioned itself for more equity investment (although its early investments, in the Blackstone Group and Morgan Stanley, were widely criticized). Economist Andy Xie, formerly with Morgan Stanley, proposed last week that China trade its dollar assets for shares in US companies on a grand scale, challenging America to overcome its financial xenophobia in order to avert a disaster of undercapitalization.