China's 'investments' a threat to U.S.

Several congressional Democrats and academics on Thursday will warn that investment by China's government-run funds carries national security risks.

Sens. Evan Bayh, D-Ind., James Webb, D-Va., and Sherrod Brown, D-Ohio, as well as Rep. Marcy Kaptur, D-Ohio, will testify before the U.S.-China Economic and Security Review Commission, a congressional advisory panel, beginning at 9:00 am.

The bipartisan commission, whose members are appointed by the White House and congressional leaders, is holding a full-day hearing on the national security implications of the funds, known as sovereign wealth funds.

Sovereign wealth funds from Middle Eastern and Asian countries, including China, have taken a much higher profile in recent months after investing almost $30 billion in several ailing financial services firms, including Citigroup Inc. and Merrill Lynch & Co. Norway, Russia, Canada and the state of Alaska also run similar funds.

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