The House Select Committee on China recently announced investigations into BlackRock and index provider MSCI for investing in sanctioned Chinese companies. Representative Carlos Gimenez (R-FL) went on Fox Business's Mornings with Maria to discuss, vowing to hold these two firms accountable.
Rep. Gimenez slammed BlackRock and MSCI for "chasing the dollar and to our detriment," not only because China has sought to surpass the United States, but many of these companies BlackRock and MSCI have invested in are tied to the People's Liberation Army (PLA) and enable human rights abuses.
"All they are looking for is chasing the dollar and to our detriment. These companies are helping the PLA. They are helping the [Chinese Communist Party]. They are involved in human rights abuses in China, and so we need to bring them in and have them explain themselves," said Rep. Gimenez.
Additionally, a cursory examination of indexes showed BlackRock and MSCI had already invested nearly $500 million in these blacklisted Chinese firms. While these companies have not necessarily broken any laws, Gimenez said, "It is something we should not tolerate." The letter announcing the investigation similarly decried BlackRock and MSCI's investments, calling them "unconscionable" for profiting "from investments that fuel the military advancement of America’s foremost foreign adversary and facilitate human rights abuses."
Host Maria Bartiromo asked if one of the questions the Committee will ask BlackRock CEO Larry Fink if he is "managing money for Xi Jinping," to which Gimenez answered that he was "sure [his] colleagues are going to put [Fink] through the wringer."
Ultimately, Gimenez reiterated the Chinese threat and the problem of American companies working with them since Chinese law requires companies to share technology and information if the Chinese Communist Party or PLA deems it in their interest.
"We need to put a spotlight on what is happening. Any investment in China is investing with the Chinese Communist Party and PLA because, by law, they have to share their technology. Anything that the PLA deems to be in their interest, they can get it from that company. So everything that we invest in China is going to be working against the interests of the United States," Gimenez concluded.
