Investor George Soros has dubbed the company BlackRock's push for investments in China a "tragic mistake" that would allegedly lead to clients losing their money, according to the billionaire's new op-ed in The Wall Street Journal.
Soros went on to assert
that the US and China are "engaged in a life and death conflict between two systems of governance: repressive and democratic", urging the US Congress to pass legislation that would empower the Securities and Exchange Commission to "limit the flow of funds to China".
His comments follow American investment management corporation BlackRock, the largest asset manager in the world, announcing a major initiative in August aimed at pouring money into China, tapping the $3.6 trillion retail fund market.
According to BlackRock, China should no longer be considered an "emerging market", but rather be "represented more" in investment portfolios. The BlackRock Investment Institute (BII) recommended that investors triple their allocations to China, while the corporation's Chairman Larry Fink said "the Chinese market represents a significant opportunity to help meet the long-term goals of investors in China and internationally".
Soros, however, appears to disagree
, casting a shadow over BlackRock's investment enthusiasm about China, saying the company has drawn a clear distinction between the country's state-owned enterprises and private companies - a line that, according to Soros, is far from reality.
The billionaire earlier rolled out an op-ed
for the Financial Times
, criticising Chinese President Xi Jinping, saying that the latter "does not understand how markets operate".