Goldman Sachs launches a $5 billion fund with China to give US companies better access there, says CEO Lloyd Blankfein

China's sovereign wealth fund and Goldman have pledged to split the investment, Blankfein says.

Goldman Sachs Chairman and CEO Lloyd Blankfein told CNBC on Thursday that his firm's agreement to establish a $5 billion investment vehicle with China's sovereign wealth fund is aimed at putting money into "U.S. companies that could be helped by better access to China."

The China Investment Corporation (CIC) and Goldman have pledged to split the investment with each side putting money into the fund, and each side raising new capital from companies in their respective nations, Blankfein said on CNBC in an interview from Beijing. Goldman was one of the first American banks to make inroads into China.

Blankfein, a frequent critic of the White House, is traveling with President Donald Trump as part of a business delegation led by Commerce Secretary Wilbur Ross . The Goldman CEO said the Trump administration has America's best interests in mind .

"These are the two biggest economies in the world," Blankfein said of the U.S. and China, while urging cooperation for the mutual benefit of both nations. "Look at how much we have to gain when we work together," he added.

Blankfein also told CNBC it's inevitable that the Chinese economy will be bigger than the U.S. economy based on the shear population disparity alone. But on the measure of "purchasing power," China has already surpassed the U.S., he said.

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