Alabama Attorney General Steve Marshall is continuing to mitigate Chinese influence in American affairs.
This time, the state’s top law enforcement official along with seventeen other fellow Attorney Generals from across the country, dispatched a letter to leading asset advisors requesting information on ‘essential disclosures’ regarding Chinese investments.
The letter addressed to BlackRock, StateStreet, Invesco, JPMorgan, Goldman Sachs, and Morgan Stanley expressed the group’s concern about the possibility of the corporations misleading investors about risks associated with doing business with Chinese entities.
Marshall issued a statement after the letter was sent last Thursday emphasizing his firm opposition to Chinese overreach.
“Asset managers have a duty to be transparent with their investors, not to obscure the significant risks posed by investments in a foreign adversary,” said Marshall. “The Chinese Communist Party’s market interference, human rights abuses, and geopolitical threats are not just abstract concerns—they directly impact the financial security of American investors. We will not allow Wall Street firms to prioritize access to China over their legal and ethical obligations to their clients.”
Marshall pointed to China’s desire for control over neighboring Taiwan and also its long-standing human rights abuses against ethnic minorities.
“In addition to concealing the risks associated with investing in a foreign adversary of the U.S., BlackRock also fails to disclose China’s intention to invade Taiwan and when its funds rely on investments that could be ruled illegal at any time by the Chinese Communist Party (CCP). Additionally, BlackRock refers to China’s Uyghur forced labor and genocide as “religious and nationalist disputes” rather than calling it what it is.”
The Attorney General alleged that the Chinese Communist Party, along with companies like BlackRock, is suppressing accurate financial information and has actively manipulated stocks to mislead investors.
“Instead of disclosing that information to shareholders, BlackRock implies that the quality of Chinese audits is simply not up to U.S. standards,” Marshall said. “Further, while China emits more CO2 emissions than the U.S., Europe, and Japan combined and engages in the genocide of Uyghurs, flagrantly violating ESG principles, BlackRock’s Environment, Social, Governance (ESG) letter grade for its all-China fund is the same for its U.S. small-cap stocks fund.”
Marshall reiterated that the corporations’ involvement with Chinese investments runs contrary to their responsibilities to customers.
“It appears the asset managers’ involvement with Chinese investments may conflict with their duty of loyalty to their clients, given the CCP’s interference with its markets and companies. For example, BlackRock began aggressively pushing Chinese investments to the world shortly after being given permission from the CCP despite the fact China had been designated a foreign adversary by the U.S. only months before. BlackRock’s recommendations have since caused losses for investors and “may have breached BlackRock’s fiduciary duty of loyalty.”
To aid in potential ongoing investigations, Attorney General Marshall is demanding the asset managers answer questions regarding their Chinese investments by March 10.
