Soon after the coronavirus pandemic hit, Fink sent a letter to BlackRock’s shareholders confirming the firm’s commitment to China. “I continue to firmly 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,” wrote Fink to shareholders.
The firm “is knowingly using investments funded by hard-working Americans to support companies directly tied to the Chinese Communist Party (CCP). These investments made with Americans’ retirement savings are strengthening the Chinese economy and enhancing the Chinese military,” Consumers’ Report said.
The nonprofit also refuted BlackRock’s environmental and social investing claims. “BlackRock continues to prioritize investment in China – which is the world’s largest polluter and has a horrific human rights record,” the nonprofit said.
“As BlackRock continues to tell Americans how to run their businesses and their lives, they are knowingly turning a blind eye to the CCP’s malignant behavior and worse, sending American pensions to China,” which funds both human rights abuses and China’s intel and military advancement, Consumers’ Report warned.
“BlackRock is an investor in two companies, Hikvision and iFlytek, that the United States government has backlisted for human rights abuses against Uyghurs in Xinjiang. In the case of Hikavision, BlackRock increased its holding after the blacklisting. These companies aren’t cheap, low-tech, mass-production businesses. iFlytech works on AI and voice recognition, and Hikavision is one of the world’s largest surveillance equipment manufacturers. Both could play critical roles in expanding the CCP’s network of surveillance and control,” the nonprofit said.
The push by Consumers’ Report comes as the SEC on Thursday created a rule that would allow the agency to delist Chinese stocks that don't meet audit requirements. This could take some, but not all of the wind out of critics’ sails regarding investing in Chinese companies.
The new rule will hit about 270 Chinese companies requiring the concerns and their auditors to open their books to US inspections or face delisting.