US Government Investigates BlackRock's Chinese Investments: $9 Trillion Asset Manager Under Scrutiny

Congressional Investigation: BlackRock and MSCI's China Investments Under Scrutiny.

US Government Investigates BlackRock's Chinese Investments: $9 Trillion Asset Manager Under Scrutiny

The US House Select Committee on the Chinese Communist Party is currently investigating BlackRock Inc. and MSCI Inc. over suspicions of directing American investments into Chinese companies that are on the US government's blacklist. These companies are facing allegations of human rights violations and providing military support to China. The committee's chairman, Republican Rep. Mike Gallagher of Wisconsin, and its top Democrat, Rep. Raja Krishnamoorthi of Illinois, signed the letters.The committee has formally requested BlackRock to provide details about its investments in Chinese firms, specifically through mutual funds and other investment vehicles, by mid-August. According to the committee's findings, five BlackRock funds have collectively invested over $429 million in these blacklisted Chinese companies.

This investigation is consistent with the broader conflict between the United States and China over technology and trade. According to reports, US officials are considering new measures to screen and potentially limit investment in China's semiconductor, quantum computing, and artificial intelligence sectors. China's government, on the other hand, has warned that any new investment restrictions would be met with retaliation, demonstrating an ongoing struggle in the Sino-American economic relationship.

The lawmakers behind the investigation have expressed grave concerns about American corporations profiting from investments that aid China's military advancement and facilitate human rights violations. Representatives Mike Gallagher and Raja Krishnamoorthi wrote to BlackRock CEO Larry Fink, saying it was "unconscionable" for US companies to profit from such investments. They also stated that the investments were "against the interests of the US" .


BlackRock manages more than $9 trillion in assets.

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As a response, BlackRock released a statement confirming its position as one of the 16 asset managers providing U.S. index funds that invest in Chinese companies. The company highlighted its commitment to adhering to all relevant U.S. government laws concerning investments in China and other global markets. Similarly, MSCI acknowledged the requests made by the committee and assured that they are currently undergoing a thorough review of the situation.

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