BlackRock’s China Head Leaving the Company

The BlackRock logo outside of its offices in New York on Jan. 18, 2012. Shannon Stapleton/Reuters

BlackRock, the world’s largest asset manager, announced on June 6 that Tony Tang, the head of its China business, is leaving the company.

Tang played a key role in driving the expansion of BlackRock’s operations in the world’s second-largest economy.

In response to a question from Reuters, BlackRock confirmed Tang’s departure, stating that he “has expressed an interest in exploring opportunities” outside the firm.

Susan Chan, BlackRock’s deputy head of Asia Pacific and head of Greater China, now directly oversees the China onshore business, the company said. Chan sits on the U.S. firm’s global executive committee.

“China represents a significant opportunity for BlackRock to contribute to the financial futures of a new generation of investors,” the company said.

Tang, a former Chinese securities regulatory official, started as BlackRock’s China business head in 2019 and became one of CEO Larry Fink’s top aides.

During Tang’s tenure as China head, BlackRock established a wholly-owned China fund management unit and a joint venture with China Construction Bank and Temasek, offering wealth management services to Chinese investors.

China Connection

BlackRock’s focus on the Chinese market aligns with its long-term growth strategy as China’s economy continues to attract global investment.

In December 2021, Consumers’ Research, a Washington-based nonprofit consumer protection agency, sent a letter (pdf) to 10 governors warning them of BlackRock’s ties to China, Fox Business reported.

“BlackRock’s funneling of billions in U.S. capital to China carries with it risks not present in other markets, risks that threaten the large wagers the company is putting on steep returns from the Middle Kingdom,” wrote William Hild, executive director of Consumers’ Research.

“Chinese firms are not held to the same transparency standards as their Western counterparts, so foreign investors are often hard-pressed to appreciate the true risk profile of what they’re investing in,” he added.

Consumers’ Research says BlackRock has “turned a blind eye to the CCP’s malign behavior and worse, sending American pensions to China to support it.”

“Despite China’s status as a significant threat to American security, BlackRock has poured large capital investments into companies closely linked to the Chinese military,” the organization’s “Consumer Warning“ reads. ”BlackRock has shown that its relationship with the CCP is more important than America’s national security interests.”

A BlackRock spokesperson told Fox Business that the United States and China “have a large and interconnected economic relationship.”

“We recognize that our stakeholders have differing views on China—BlackRock takes those concerns seriously,” the spokesperson told the outlet.

“We seek to balance the concerns of our stakeholders with our role as a global investor and fiduciary working for our clients as we navigate this very complicated relationship between the U.S. and China. Our approach to Chinese-related investments is consistent with U.S. foreign policy.”

BlackRock is the first foreign-owned asset management company based outside of China that has received approval from Chinese leader Xi Jinping to start a mutual fund business in the country, according to Reuters.

Recently, Breitbart’s economics editor, John Carney, said that BlackRock, with its environmental, social, and governance (ESG) agenda, was trying to implement China’s social credit system on American corporations.

BlackRock gets investment from multiple sources, including government and pension funds.

Last year, Louisiana removed BlackRock from managing its public investment funds due to the company’s “anti-fossil fuel policies.” In the first quarter of 2023, BlackRock had $9.09 trillion worth of assets under management, making it the biggest asset manager in the world.

Reuters and Naveen Athrappully contributed to this report.