China’s sovereign wealth fund, China Investment Corp, will soon receive US$100-200 billion in new government funds, a move reflecting Beijing’s aim to reduce its exposure to US government debt, the Financial Times reported. CIC has already fully allocated the US$110 billion it had available for offshore investments. A number of senior officials, including China’s central bank governor, have recently argued that the nation’s foreign exchange reserves are beyond “reasonable requirements” and that it only needs around US$1 trillion. Already the largest in the world, China’s forex reserves grew by nearly US$200 billion in the first quarter to top US$3 trillion for the first time. Beijing is considering using the reserves to set up special-purpose funds that would target sectors like energy and precious metals, as well as a forex stabilization fund.