BlackRock has banned employees from using company-issued devices during business trips to China, joining a growing list of global firms restricting travel to the world’s second-largest economy amid escalating geopolitical tensions.The world’s largest asset manager told staff in an internal memo that company iPhones, iPads, and laptops are prohibited during China visits, effective July 16, Bloomberg News reported. Instead, employees must use temporary loaner phones and cannot access BlackRock’s network through virtual private networks.The restrictions apply to both business and personal travel, reflecting heightened security concerns that have gripped the financial industry.
Wells Fargo banker incident sparks wider industry fears about China business travel
BlackRock’s policy comes after Wells Fargo suspended all China travel following the detention of senior trade financing banker Chenyue Mao, who was blocked from leaving the country. Chinese officials said the case involved a criminal matter, but provided no further details.The incident has sent shockwaves through Wall Street, where firms are reassessing the risks of doing business in China. Several American citizens, including a US Commerce Department employee, have reportedly been prevented from leaving China in recent months.US-China relations have deteriorated significantly, creating operational challenges for global financial companies trying to navigate between the world’s two largest economies. The tensions have forced many firms to scale back their China presence despite the market’s enormous potential.Since China implemented stricter data security laws in 2021, international banks and asset managers have been required to establish onshore data centers, keeping Chinese data within the country’s borders. This has increased operational costs and complicated business management.BlackRock maintains substantial China operations through a wholly-owned mutual fund firm and a wealth management joint venture with China Construction Bank Corp., making the new travel restrictions particularly significant for the asset manager’s regional strategy.
