Ever since the Asian Financial Crisis of 1997, China has been amassing foreign exchange reserves. Since 2007 it has been strategically deploying these reserves internationally to buy foreign assets...Show moreEver since the Asian Financial Crisis of 1997, China has been amassing foreign exchange reserves. Since 2007 it has been strategically deploying these reserves internationally to buy foreign assets using so-called Sovereign Leveraged Funds. Some scholars claim most of these investments were not part of a well-defined grand strategy, but a crisis-induced necessity. Others claim it was part of a grand strategy. There is, however, a consensus on both sides that the Silk Road Fund indeed has a strategic goal, but theoretical justification for this consensus is lacking. Using the case of the investment in the Port of Rotterdam, which is part of the Silk Road Fund, I research whether the leveraging of foreign exchange reserves can be explained by combining the theories of economic statecraft and geoeconomics in order to address implications that can be drawn from this. The findings indicate that the Chinese state is hiding behind commercial actors, and simultaneously aligning the commercial and strategic interests to gain strategic power internationally, aided using the leveraging of foreign exchange reserves.Show less