China has been in the news a lot this year. was there before Conflict Around Beijing’s hosting of the Winter Olympics. and then the United Nations issued a report good Reaffirming China’s “crimes against humanity”. Clearly, China is a country that violates human rights. But despite such global notoriety, America’s financial industry remains curiously indifferent.
In fact, major US investment companies maintain warm relations with Beijing. And nowhere is this more clear than the upcoming Global Financial Leaders Investment Summit in Hong Kong.
Hong Kong is a curious choice for any free market summit. Hong Kong, once considered a sovereign territory, has increasingly come under Beijing’s control. And since 2019, the sector has progressively declined Difference– With protesters facing extradition to mainland China.
It is clear that Hong Kong is now under Beijing. But apparently that doesn’t bother Wall Street’s Goldman Sachs GS executives.,
Morgan Stanley MS,
and BlackRock BLK
who are already in line to be involved Hong Kong Summit. It’s doubly troubling when one considers that Hong Kong’s new chief executive was John Lee. Chosen To help strengthen China’s crackdown on protesters by Beijing.
Wall Street revealed its tilt toward China at a recent congressional hearing, when some of the country’s top banking officials testified before both houses of Congress. When asked about a possible Chinese invasion of Taiwan, the CEOs Agreed That they would do whatever the US government required in a crisis like this. But it was just a show.
Citigroup’s Jane Fraser had more of a comment. When asked whether she would condemn China’s human rights abuses, Fraser Told“Condemnation is a strong word. We are certainly deeply pained to see this.”
Wall Street is focused on reaping massive returns from its investments in China. It is estimated, for example, JPMorgan Chase JPM
holds roughly $20 billion Worth investing in China. Such massive holdings clearly outweigh China’s horrific human rights record.
This is worrying, because in addition Massacre, Beijing has overseen the mass relocation of Uighurs and other ethnic groups in Xinjiang’s Far West region to factories across China. and also 80,000 Between 2017 and 2019 alone, Uighurs were relocated out of Xinjiang. In forced-labour conditions, many of them are now working in loosely tied factories. 82 Famous global brands including Apple AAPL,
BMW XE: BMW,
Huawei, Nike WHO,
Samsung KR: 005930,
and Volkswagen XE: VOW,
However, this is not enough to scare Wall Street. Thanks to exchange-traded funds (ETFs) and other investment products, America’s major investment houses continue to benefit from Beijing’s broader ambitions — even if it involves efforts to modernize China’s military.
A good example is CSSC Holdings Ltd. CN:600150
(CSSC), China Largest Manufacturer of naval ships. Thanks to Beijing’s efforts to raise funds through the capital markets, the CSSC is listed on several major investment indices. In fact, CSSC was able to mobilize $8.63 billion from debt markets through 2015, helping it launch a new Chinese warship—the Fujian-intended to Rival America’s largest and most advanced aircraft carrier.
Wall Street’s comfort in letting China finance its military builds seems to defy common sense. But America’s corporate leaders appear to be completely detached from these long-term concerns.
Since Wall Street will not change course, Congress must step in now—particularly to help prevent a potentially costly war in the Pacific.
Congress has the authority to address the transparency, disclosure and due diligence requirements of Wall Street and the financial sector – not to mention the potential to create sanctions. And so, the first step for Congress should be to ban the sale of any investment products that help fund China’s military construction.
The upcoming financial summit in Hong Kong makes it clear that Wall Street CEOs will shamelessly stray to Beijing. this is unacceptable. US banking officials—who publicly do lip-service to leaving China in the event of an invasion of Taiwan—must face the hypocrisy of their actions. Congress must act to ensure that approved and poorly-acted Chinese securities are not traded on Wall Street. This is the only logical answer to Beijing’s despicable behavior.
Robbie Stephanie Saunders is the National Security Adviser in the Coalition for a Prosperous AmericaA bipartisan advocacy organization representing farmers, ranchers, manufacturers, and labor organizations that make and develop things in the United States. She has previously served as a senior adviser in the US State Department, House and Senate.
Credit: www.marketwatch.com /