Johan Forssell invests in companies controlled by the Communist Party

Säpo has singled out China as “a long-term and growing threat” – and the government warns of the country’s “growing global ambitions”.

Despite this, Foreign Trade Minister Johan Forssell (M) buys funds that invest in companies controlled by the Chinese Communist Party.

– China in particular is a large part of the world market, comments the minister.

Foreign Minister Tobias Billström (M) chose to specifically point to the problems surrounding China when he gave his foreign declaration before the Riksdag in February this year.

– China is the world’s second largest economy and a technological leader, while the country still has an authoritarian government and growing global ambitions. We have to deal with this, said the foreign minister.

Tobias Billström also addressed the strained atmosphere between China and Taiwan in his speech to the Riksdag.

– China’s new tone towards Taiwan gives cause for concern, said Billström.

Säpo: “Serious economic threat to Sweden”

The Security Police, Säpo, has also focused particularly on China.

In its situational picture of the activities of foreign powers in Sweden, Säpo concludes that “the Chinese intelligence services carry out systematic and extensive intelligence activities and security-threatening activities against Sweden and Swedish interests”.

China’s actions can, according to Säpo, threaten Swedish business life and the Swedish economy.

“The combined Chinese security-threatening activities risk undermining Swedish exports and innovation capacity, and in the long term it can seriously affect Swedish competitiveness and employment and is a serious economic threat to Sweden,” writes Säpo in its situational picture.

The great economic muscle that China has can be used by the country through various strategic acquisitions and investments in other countries.

Säpo also points out that according to an intelligence law, Chinese citizens are obliged to assist the intelligence services in China “when necessary”.

The minister invests privately in China

Despite the extensive problems that Säpo points out, as well as the government’s expressed concern about China’s actions, the Minister for Aid and Foreign Trade, Johan Forssell, invests privately in funds that have extensive holdings in the Chinese economy.

In February this year, two days after Foreign Minister Tobias Billström read out the government’s foreign policy declaration in the Riksdag, Johan Forssell bought into the Allianz All China Equity fund with SEK 300,000.

This is evident from the Government’s own accounting of its financial holdings.

The fund has invested heavily in a number of Chinese companies. The total holdings in the fund are just over 1.6 billion dollars, according to the fund company’s latest report from March this year.

Among the holdings in the fund are mining companies, technology companies and banks. Companies controlled by the Communist Party of China are also included in the fund’s portfolio. Including railway companies, construction companies, energy companies and oil companies.

Sold China shares

Until as recently as January, Johan Forssell owned shares in the Chinese technology giant Alibaba, but after the turn of the year the minister chose to sell the shares.

The government has also invested more than SEK 200,000 in Handelsbanken’s China fund, which owns shares in several Chinese technology companies. Almost 55 percent of the holdings in the fund are invested in China. Just over 33 percent is invested in Taiwan.

The minister has also invested roughly SEK 200,000 in the exchange-traded fund iShares MSCI China, which, among other things, owns shares in subsidiaries of companies owned by the Chinese state.

In total, Johan Forssell has reported almost SEK 6.2 million in personal holdings.

– Just like several hundred thousand other Swedes, I have part of my savings in equity funds in emerging markets. These include Taiwan, South Korea, China, Brazil and India. I do not own any individual shares, but have chosen a broad saving, writes Johan Forssell in an email to Aftonbladet.

– China in particular is a large part of the world market. China is Sweden’s eleventh largest export market for goods and the fifth largest importing country for goods.

FACTS Holdings in the Allianz All China Equity fund – a selection

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