Michael Bow
Chief City Correspondent
01 October 2024 2:31pm
The head of the world’s biggest investment company has accused China of “supporting our enemy” by continuing to trade with Russia.
Larry Fink, chief executive of $10 trillion (£7.50 trillion) fund manager BlackRock, said businesses should “re-evaluate” their involvement with China because of Beijing’s economic support for the Kremlin.
Addressing China, he told a conference in Berlin: “Ukraine is at our doorsteps here and I’m surprised that there’s not a larger questioning or demanding – you’re supporting our enemy, we’re putting billions and billions of dollars into supporting the survival of Ukraine, and there should be a cost to that.
“Russia’s biggest supporter and fundamental supporter of the Russian economy is China. And that has to be at least discussed. I’m not here to make any judgments but I don’t believe there’s been enough assessment.”
Mr Fink’s comments carry significant weight due to BlackRock’s role as the world’s largest fund manager. The investment giant, which he co-founded, owns significant stakes in the world’s biggest companies.
The 71-year-old is also influential in government policy circles, sitting on the boards of The World Economic Forum, US think tank the Council on Foreign Relations and humanitarian organisation the International Rescue Committee. Mr Fink is scheduled to attend the UK Government’s flagship investment summit on Oct 14.
Russia’s economy has survived a wave of sanctions levied by the West since the invasion of Ukraine in no small part thanks to the support of Beijing. China is Russia’s number one trading partner after goods flows between the two countries hit a record high of $240bn last year.
Chinese president Xi Jinping has built close ties with Vladimir Putin in a bid to create a rival axis of power to the US and other Western nations. Putin called president Xi an “old friend” ahead of talks last year.
BlackRock has a significant presence in China but Mr Fink said the company would have to “re-evaluate” it in light of Beijing’s continued support for Moscow.
He said in comments reported by Bloomberg: “We have businesses in China, I’m sure everybody here has some businesses in China. We all have to re-evaluate that, like we have to re-evaluate a risk in liquidity traps, a risk in everything.”
As well as business links, Mr Fink serves on the advisory board of the Tsinghua University School of Economics and Management in Beijing, according to his official BlackRock biography.
The comments come amid signs that the British Government is seeking to forge closer ties with Beijing after a period of tension.
Sir Keir Starmer held talks with president Xi Jinping last month and Chancellor Rachel Reeves is reportedly planning to visit Beijing early next year to host the first UK-China Economic and Financial Dialogue since 2019, according to Sky News.
Labour grandee Lord Mandelson said last month that the Government would maintain “proper channels of communication” with Beijing following what he termed a “boycott” of China by the former Tory government.
The post China is ‘supporting our enemy’ by trading with Russia, says BlackRock appeared first on The Telegraph.
