Daily Management Review

George Soros speaks out against investing in China


Investing in China's economy is a mistake that can lead to the loss of money and damage the interests of democracies, said American billionaire George Soros.

Tomas Roggero
Tomas Roggero
Investment company BlackRock is making a mistake by investing in the economy of China, wrote U.S. billionaire George Soros in a column for The Wall Street Journal. 

In June, BlackRock received permission to set up China's first wholly foreign-owned mutual fund business, Bloomberg reported. In late August, BlackRock's new Chinese unit launched its first product. The company's research division recommended that investors increase their investments in the PRC economy, the Financial Times reported. 

The billionaire noted that BlackRock seemed to believe the claims of Chinese authorities, who do not really distinguish between state and private companies, seeing both as "tools of the one-party state." He added that BlackRock's actions could also have been influenced by the potential profits that could come from entering the previously closed Chinese market. 

The interests of "the United States and other democracies" are threatened by BlackRock's actions because the money invested in China's economy would serve to support Xi Jinping's "repressive home and aggressive overseas regime," Soros said. He said that the U.S. Congress should give the U.S. Securities and Exchange Commission the right to restrict the flow of funds to the PRC.

source: wsj.com, ft.com