BlackRock Inc. has told staff traveling to China for business trips to use temporary loaner phones and not to bring company laptops, underscoring growing concern among some global firms about employees working there.
The world’s largest asset manager detailed the “policy enhancement” on business travel to China in an internal memo seen by Bloomberg News, saying it is effective July 16.
The US firm told staff that using BlackRock issued employee devices, including iPhones and iPads, isn’t permitted, according to the memo. Using BlackRock laptops or remote access via VPN will also not be allowed. Employees were notified they wouldn’t have access to the BlackRock network during personal travel in China.
A BlackRock spokesperson didn’t immediately reply to requests for comment.
The latest changes come amid growing jitters around business travel to China. Wells Fargo & Co. last week suspended travel to China after one of its top trade financing bankers, Chenyue Mao, was blocked from leaving the country. This week, Foreign Ministry spokesman Guo Jiakun said the case was related to a criminal matter.
China has also stopped an American citizen who works for the US Commerce Department from leaving the nation for several months, according to media reports.
US-China geopolitical tensions have weighed on the global financial industry in recent years, making it increasingly difficult for firms to navigate. Global banks have scaled back their presence in China in the past few years amid slowing economic growth and escalating trade disputes.
Since China tightened data security further with two new laws in 2021, global firms have focused on information segregation. Many banks and asset managers have created onshore centers to keep China data in the country as part of global operations, adding costs and hindering management of their Chinese businesses, according to the Asia Securities Industry & Financial Markets Association.
BlackRock’s presence in China includes a wholly owned mutual fund firm as well as a wealth management joint venture with China Construction Bank Corp.
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