China's investment in Blackstone shows that the China administration has changed its investment philosophy and the "one-cycle" thinking that only foreign exchange reserves were used to invest in US Treasury bonds. It is indeed safe to invest in U.S. Treasury bonds, but considering domestic inflation and the decline of the exchange rate of the US dollar, its average annual real income in recent five years is about-1%. Considering that Blackstone's average annual yield in the past exceeded 40%, it is a better choice than investing in US Treasury bonds anyway.
In addition, investing in Blackstone can test the reaction of the United States and prepare for investing in the United States. Judging from past experience, the United States instinctively rejected any large investment by China in the United States. CNOOC's acquisition of Unocal is a typical case. But the United States is also the most important capital market in the world, and China can't get around it. Investing in Blackstone is a relatively smart choice. On the one hand, it avoids the violent impact that the direct acquisition of enterprises may bring to the US government and Congress, causing a fierce political rebound. On the other hand, it did invest $3 billion in the United States. How the United States views this $3 billion and whether it takes restrictive measures against similar behaviors are important indicators for China to make similar investments in the future. Judging from the current situation, except for a few members of Congress, the overall response in the United States is good.
Blackstone is a cornerstone, which witnessed a historic step of China's foreign investment. Blackstone is also a touchstone, testing China's determination to diversify its foreign exchange investment. Blackstone is still a stone asking for directions, exploring the way to invest in the United States in the future.