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FIRST ON FOX – Consumers’ Research, an educational nonprofit that shares consumer information, on Thursday morning sent a letter to 10 governors warning them of the investment management company BlackRock’s ties to China.
Consumers’ Research executive director Will Hild sent the letter to the governors of Washington, Florida, New York, Nevada, South Carolina, Oklahoma, Pennsylvania, Montana, Nebraska and West Virginia – the 10 states with the top 10 state pension fund investments with BlackRock – to “raise awareness among American consumers that BlackRock is taking their money and betting on China.”
“BlackRock’s funneling of billions in U.S. capital to China carries with it risks not present in other markets, risks that threaten the large wagers the company is putting on steep returns from the Middle Kingdom,” Hild wrote.
“…Chinese firms are not held to the same transparency standards as their western counterparts, so foreign investors are often hard pressed to appreciate the true risk profile of what they’re investing in,” he added.
Hild urged governors to “do their due diligence in educating themselves and their staff on the multiple risks posed by BlackRock’s extensive investments in Chinese companies, both from an ethical standpoint as well as the fiduciary responsibility owed to U.S. pension holders and retirees.”
Consumers’ Research also issued a “Consumer Warning” on Thursday morning highlighting some of BlackRock’s work in China, noting that the investment company, which has about $10 trillion under its management, first opened its Beijing office in 2008.
BLACKROCK RESPONDS TO SOROS’ CRITICISM OF ITS CHINA INVESTMENTS
After introducing mutual funds into China, the company told its clients to invest in the country, pushing billions of dollars into the world’s second-largest economy. It is the first foreign-owned, asset management company based outside of China that has received approval from Chinese President Xi Jinping to start a mutual fund business in the country, according to Reuters.
In 2020 amid the COVID-19 pandemic, BlackRock CEO Larry Fink said he continues to believe “China will be one of the biggest opportunities for BlackRock over the long term, both for asset managers and investors, despite the uncertainty and decoupling of global systems we’re seeing today.”
Larry Fink, chief executive officer of BlackRock Inc., speaks during a Bloomberg Television interview in New York, on Wednesday, April 19, 2017. (Christopher Goodney/Bloomberg) (Getty Images)
While a good relationship with China may be lucrative for the company, Consumers’ Research says BlackRock has “turned a blind eye to the CCP’s malign behavior and worse, sending American pensions to China to support …….
Source: https://www.foxbusiness.com/politics/blackrock-china-consumers-research-warning