BlackRock Backed China Companies Linked to Nuclear Arms

BlackRock, the world's largest asset manager, has invested in Chinese companies working on the communist nation's nuclear weapons buildup, according to a report by the Coalition for A Prosperous America (CPA).

The major Wall Street firm, which reports managing $10 trillion in assets, is also investing millions in an estimated 30 companies with ties to the Chinese military that are currently sanctioned by the U.S. government.

The report notes that BlackRock has stated it does not do business with companies in China that are manufacturing nuclear weapons.

"The reality is that BlackRock holds stock in Chinese companies pursuing an aggressive buildup of nuclear warheads meant to hold United States territory at risk," the report said.

BlackRock holds stock in China National Nuclear Power (CNNP) and CGN Power — two companies the report described as central to China's nuclear weapons complex. According to the report, BlackRock holds a $46 million stake in CNNP.

"These holdings contradict BlackRock's public assertion that 0.00% of companies in its flagship emerging markets fund are involved in the manufacture of nuclear weapons and their delivery systems," the report said.

According to the report, BlackRock has invested nearly $50 million in Chinese companies sanctioned under the 2022 Uyghur Forced Labor Prevention Act, despite adopting a corporate policy that pledged to support responsible "environmental, social and governance" ESG policies. The legislation came in response to what the State Department has called Beijing's policy of genocide against the Uyghur minority.

"China's political leadership wants to redirect capital to emerging technologies with military application in preparation for a potential war with the United States," the report said. "Beijing also wants to continue its campaign of oppression against the Uyghurs and other minority groups in northwestern China."

MSCI Inc., the world's leading provider of investment support tools called indexes, was also mentioned in the report for its role in BlackRock's investments in Chinese companies with links to the military. With more than $15 trillion in assets, MSCI is BlackRock's main index provider.

"As MSCI's most important customer and second largest shareholder, BlackRock could demand the exclusion of Chinese military companies and human rights violators from its indexes," the report said. "Instead, BlackRock fails to acknowledge that its exposure to U.S.-sanctioned entities is a problem, claiming that it 'complies with all applicable U.S. government laws.'"

Both BlackRock and MSCI claim to support ESG principles but the companies "willfully undermine congressional intent to protect defenseless Uyghurs by investing in companies involved in the ongoing oppression," the report said.

Regarded as one of the most powerful companies in the world, BlackRock's enormous asset fund gives it "influence over thousands of companies worldwide," the CPA report said.

"Most of this influence comes from the proxy voting rights of its passive index funds registered around the world," the report said.

In 2021, BlackRock became the first global asset management firm Beijing allowed to operate a wholly owned mutual fund business in China. During Chinese President Xi Jinping's visit to California in November, CEO Larry Fink reportedly paid $40,000 for a seat at his dinner table.

A champion of the ESG investing push for more than a decade, the Economist reported in August that Fink was dropping his crusade due to increasingly vocal personal attacks and a downturn in profits. The firm's clients have pulled billions from BlackRock over concerns it was putting social and political interests ahead of its fiduciary duties.

Newsmax has reached out to both BlackRock and MSCI for comment.