U.S. Reps. Mike Gallagher, R-Wis., and Raja Krishnamoorthi, D-Ill., wrote to BlackRock and Morgan Stanley Capital International (MSCI), accusing them of using American investment dollars to fund CCP-supporting companies. The letters, written July 31, demanded more information from the companies, according to an Aug. 1 news release from the Select Committee on the CCP.
"It is unconscionable for any U.S. company to profit from investments that fuel the military advancement of America’s foremost foreign adversary and facilitate human rights abuses. We therefore seek additional information regarding this deeply troubling matter," Gallagher and Krishnamoorthi said in the release.
Gallagher and Krishnamoorthi, copmmittee chairman and ranking member, respectively, sent letters to the companies MSCI and BlackRock accusing the companies of investing funds into “blacklisted Chinese companies,” using the savings of Americans to fund companies who support the CCP, the release reported. Gallagher and Krishnamoorthi have recently begun an investigation into the matter.
In the letter to MSCI, Gallagher and Krishnamoorthi insist their review has indicated support for the People’s Liberation Army and the “technological supremacy” of the CCP, by companies now being “unwittingly” funded by American investment.
The same accusations were leveled against BlackRock, as seen in the letter addressed to company CEO Larry Fink. Gallagher and Krishnamoorthi said the actions of the firm are “exacerbating” the threat of the CCP, and “undermining American values.”
The release also reported the letters include various demands from the committee to MSCI and BlackRock. These demands include things like a list of companies they invest in and why those companies are chosen, as well as the rules and regulations concerning “conflicts of interest” within engagements with China.
Additionally, the letter reportedly asks about each company’s “due diligence” toward Chinese companies within their indexes; whether any of them exist on “red-flag lists,” and if they do, why, and how is that communicated to the American public, the release reported.
According to its website, the Select Committee on the CCP works with both political parties to analyze the Chinese Communist Party with any threats it may pose, and in response, to develop strategies aimed at protecting American interests.
