Global asset management giant BlackRock’s Chairman and CEO Larry Fink has accused the Chinese Communist Party (CCP) of being the “biggest supporter of the Russian economy” and urged Western companies to “reassess” their relationship with China.
Fink made the remarks during a panel discussion at the Berlin Global Dialogue conference in Germany on Tuesday, October 1st, stating, “We must reassess our relationship with China (CCP).”
He emphasized that the CCP should pay a price for its support of Russia’s invasion of Ukraine, saying, “If I support the enemies of my clients, I would be fired.”
Fink believed that there is too little discussion about China (CCP) and the Russia-Ukraine war, expressing surprise that there has not been more scrutiny or demands given the proximity of Ukraine to Western countries. He pointed out, “You (CCP) are supporting our enemies, and we have invested billions of dollars to support the survival of Ukraine.”
He added, “The biggest supporter of Russia and the fundamental supporter of the Russian economy is China (CCP). This at least needs some discussion; I am not passing any judgment here, but I don’t believe there has been enough evaluation.”
The news was first reported by Bloomberg, and Fink’s comments about China received enthusiastic applause from the audience at the Berlin Global Dialogue.
The Berlin Global Dialogue is an emerging international forum established in 2022 for governments, businesses, and civil society organizations to engage in dialogue to address the economic, political, and social challenges of the 21st century. This year’s forum focuses on “exploring new ways of cooperation in a divided world.”
In 2021, BlackRock became the first global asset management company to operate wholly-owned mutual fund business in China. However, BlackRock’s investments in China did not yield the expected returns. According to financial data provider Wind in 2023, BlackRock ranked 145th out of nearly 200 Chinese mutual fund companies in terms of assets under management. BlackRock also closed the China Flexible Equity Fund on November 7, 2023.
Furthermore, the US House of Representatives launched an investigation into BlackRock last year for pushing US capital investment to Chinese companies on the blacklist. Concurrently under investigation was stock market index compiler MSCI.
As a Wall Street titan, BlackRock’s CEO’s comments carry significant weight.
According to official records, 71-year-old Fink is a board member of organizations such as The World Economic Forum, The Council on Foreign Relations, and The International Rescue Committee. He is also a member of the Advisory Board of the Tsinghua University School of Economics and Management in Beijing.