Larry Fink, the CEO of BlackRock, the world’s largest investment management company with over $10 trillion in assets, has publicly criticized China for its ongoing trade relations with Russia amid the Ukraine conflict. Speaking at a conference in Berlin, Fink urged businesses to reconsider their ties with China due to its economic support for the Kremlin.
He emphasized the pressing nature of the issue, stating, “Ukraine is at our doorsteps here,” and expressed surprise at the lack of significant scrutiny regarding China's role in the situation.
Fink pointed out that China is a major supporter of the Russian economy, noting, “Russia’s biggest supporter and fundamental supporter of the Russian economy is China.” He believes this relationship should be more thoroughly discussed and evaluated, especially as Western nations invest heavily in supporting Ukraine’s survival. His remarks reflect a growing concern among global investors about the implications of China’s actions in the geopolitical landscape.
As the leader of BlackRock, which has substantial stakes in numerous multinational corporations, Fink's insights carry considerable influence. Beyond his corporate role, he is actively involved in various policy-making circles, including the World Economic Forum and the Council on Foreign Relations. His comments come ahead of the UK Government's investment summit scheduled for October 14, where he is expected to attend.
The economic ties between Russia and China have deepened significantly, with trade reaching a record $240 billion last year. Chinese President Xi Jinping has fostered a close relationship with Russian President Vladimir Putin, positioning themselves as a counterbalance to Western power. This alliance has helped Russia withstand the extensive sanctions imposed by Western nations following its invasion of Ukraine.
While BlackRock has established a strong presence in China, Fink indicated that the company must reassess its involvement there due to Beijing’s continued backing of Moscow. He stated, “We all have to re-evaluate that like we have to re-evaluate a risk in liquidity traps,” highlighting the need for businesses to recognize geopolitical risks.
This dialogue occurs amidst evolving UK-China relations, as the British Government appears to seek a rapprochement following years of tension. Labor leader Sir Keir Starmer recently engaged in discussions with Xi, and plans for high-level UK-China economic talks are underway. Such developments suggest a nuanced approach to navigating complex international relationships while addressing pressing global issues.
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