FX.co ★ George Soros calls Blackrock’s initiative "tragic mistake''

Legendary American billionaire George Soros considers BlackRock’s initiative in China a "tragic mistake''. The economist believes that the company poses a risk for its clients, offering them to invest in Chinese assets.

The situation with BlackRock is like trapping or hostage-taking. On the one hand, Chinese President Xi Jinping has made it easier for foreign investors to participate in domestic markets. On the other hand, his government has tightened its grip on the private sector and clashed with the US over many issues. Consequently, Xi Jinping will be able to influence the United States by manipulating US companies in China.

"Pouring billions of dollars into China now is a tragic mistake," George Soros wrote. However, huge companies like BlackRock and even Goldman Sachs do not share Soros' view and are actively expanding their participation in the market. They believe that investment opportunities in China outweigh possible risks. However, investing in Chinese assets may damage the national security interests of the US and other democracies. George Soros also has his supporters. Following him, a large investment fund, ARK Invest, refused to buy Chinese shares.

Notably, China is currently launching a crackdown on its own companies. It is a cause for serious concern. Many investors are afraid of losing money. George Soros called Xi Jinping "the most dangerous enemy of open societies in the world." According to Soros, the US Congress should limit investment in Chinese companies and in this way protect investors.