17 States Expose BlackRock’s $10T China Bet—Is Your 401k at Risk?
The Finance Chronicle
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Published on the 26 dec 2025 in the UNITED STATES
17 states have launched an unprecedented investigation into BlackRock, JP Morgan, and Goldman Sachs over a $10 trillion exposure to China that could wipe out millions of retirement accounts. If you have a 401k, pension, or IRA, this affects YOU directly.
On February 6, 2025, attorneys general from Montana to Texas demanded answers about $73 billion in American retirement money funding China’s military buildup. While BlackRock collected billions in fees, they downplayed genocide and war risks in their fund disclosures. This isn’t just about Wall Street profits—it’s about YOUR retirement security.
In this video, The Finance Chronicle breaks down:
Why 17 state AGs are investigating Wall Street’s biggest firms
How $73 billion in pension funds are tied to Chinese military companies
The hidden China exposure in YOUR 401k and retirement accounts
What happens to your savings if Taiwan conflict begins
Historical parallels to 2008 financial crisis and 1930s Germany
Timeline of what’s coming next (March 10th deadline is critical)
How to check your retirement accounts for China exposure
Which states are already divesting and why
This investigation reveals that BlackRock, JP Morgan, Goldman Sachs, Morgan Stanley, State Street, and Invesco have been betting American workers’ retirement savings on a foreign adversary while downplaying the risks. With Trump’s administration pushing 60% tariffs and military analysts warning of potential Taiwan conflict by 2027, time is running out to protect your financial future.
Whether you’re a teacher in California, a police officer in New York, or a state worker in Texas, your pension fund likely has significant China exposure—and you probably didn’t even know it. CalPERS has $7.8 billion invested in China. New York State’s pension fund added 42% of its China exposure in just the last 3 years. This is YOUR money at risk.
The Finance Chronicle provides deep financial analysis and breaking economic news you won’t find on mainstream media. We expose what Wall Street doesn’t want you to know about your retirement security.
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DISCLAIMER: This video is for educational and informational purposes only. It is not financial advice. Consult with a licensed financial advisor before making investment decisions.
Bloomberg Investigation Reports (February 2025)
State Attorney General Official Letters
House Select Committee on CCP Findings
CNBC Pension Fund Analysis
Future Union Report on Public Pensions
JP Morgan 2025 Market Outlook
Council on Foreign Relations China Demographics Study
0:00 – Introduction: 17 States vs. Wall Street
1:15 – February 6th Investigation Explained
2:45 – The $10 Trillion China Exposure
4:30 – How BlackRock Got China’s Approval
6:00 – Your Retirement Money at Risk
7:45 – Following the Money: $73 Billion Trail
9:20 – Who Really Benefits From This
11:00 – China’s Strategic Game Plan
12:30 – What Keeps Experts Up at Night
14:00 – Historical Parallels: 2008 & 1930s
15:30 – Timeline: What Happens Next
17:00 – How to Protect Your 401k
18:15 – Subscribe for Updates & Next Video
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Transcript.
Original link/video https://www.youtube.com/watch?v=OLE2uVmPfDg
Introduction: 17 States vs. Wall Street
On February 6th, 2025, 17 state attorneys general initiated an investigation targeting Black Rockck, JPMorgan, and Goldman Sachs regarding a10 trillion dollar exposure to China that has the potential to devastate your retirement funds.
Montana’s attorney general identified it. Virginia’s AG verified it. But here’s the information they’re keeping off CNBC broadcasts.
Wall Street has been concealing something enormous. We’re not discussing a handful of poor investment choices here.
We’re discussing America’s biggest asset management firms. Gambling your 401k, your pension, your entire life savings on a foreign adversary that’s gearing up for conflict with Taiwan.
And they never disclose the genuine risks to you. This isn’t about market fluctuations or portfolio diversification. This is about $73 billion of American retirement capital
financing, the Chinese Communist Party’s military expansion.
While Black Rockck characterizes genocide as nationalist disputes, I’m going to reveal precisely what’s unfolding, why the situation is different now, and what it signifies for your financial security.
Listen, I’ve been monitoring Wall Street’s China exposure for 3 years at this point. But what transpired on February 6th, that was completely unprecedented.
17 Republican attorneys general from Montana to Texas, from Virginia to Wyoming, transmitted identical correspondents to six of Wall Street’s February 6th Investigation Explained most powerful entities. They’re
demanding responses by March 10th. And the questions they’re posing are absolutely devastating. Here’s what the majority of people overlooked. According to Bloomberg, these AGs aren’t simply
requesting information politely. They’re threatening state securities law violations, unfair trade practice charges, and breaches of fiduciary duty.
We’re discussing potential criminal charges against the planet’s largest asset managers. But look at this. The media is scarcely reporting it. You know the reason?
Because it reveals something Wall Street’s been concealing since 2021. that Black Rockck obtained China’s authorization to operate there and immediately began encouraging American
investors to double their China exposure. Even though the US had just designated China as a foreign adversary months prior, this is your Cold War moment.
Remember 1971 when Nixon shocked the world by opening China, we’re witnessing that relationship completely reverse and your retirement accounts caught in the crossfire.
Let me break down what actually transpired because this becomes absolutely wild. According to multiple state AG’s reports, Black Rockck manages 11.6 trillion in assets as of January 2025.
That’s more than most countries entire GDP. And here’s the thing, they’ve been aggressivelypromoting China investments since June 2021.
The investigation discovered that Black Rockck became the first foreign asset manager to receive full approvalfrom the Chinese Communist Party to sell directly to Chinese investors.
Within months, Black Rockck’s CEO, Larry Frink, recommended that investors more than double their Chinese allocations. Want to know the insane part? This occurred The $10 Trillion China Exposure
just months after the US officially designated China as a foreign adversary, not a competitor, not a rival, an adversary.
But Black Rockck’s fund perspectuses. They discuss investing in China like its Germany or Japan. According to the Virginia Attorney General’s Office, Black Rockck’s
documents describe potential conflict with Taiwan as creating minor risks like interest rate fluctuations, interest rate fluctuations.
That’s what they label a potential war between nuclear powers. And it’s not just Black Rockck. JP Morgan’s research arm was ordered by Beijing in 2022 to stop publishing politically sensitive financial
information.
So, multiple outlets confirm this. Think about that. China’s dictating to American banks what economic data they can and can’t share with American investors.
Goldman Sachs, Morgan Stanley, State Street, Invesco, they’re all executing the same thing. The Montana AG’s letter points out that these firms call the Weaguer genocide.
And I’m not fabricating this religious and nationalist disputes. Your money’s funding concentration camps. And they’re calling it a cultural disagreement.
Let’s follow the money because once you see who benefits, everything makes sense.
Start with your retirement.
According to a report by Future Union that multiple news sources cited, US public pension funds have invested between 68 billion and 73 billion in China and Hong Kong.
That’s your money. If you’re a teacher in California, a cop in New York, or a state worker in Texas, the New York State Common Retirement Fund, they’ve committed 8.3 billion to
China with 3.5 billion added in just the last three years.
Kalpers, the nation’s largest public pension serving two million California employees, has $7.8 billion in China with nearly $2 billion added since 2023 California state.
How BlackRock Got China’s Approval teachers 5.6 billion in China. Texas teachers retirement $2.7 billion. And here’s what shocked me. According to CNBC’s analysis, 42% of New York’s
pension funds China exposure was added in the last 36 months. They’re not pulling out. They’re doubling down. But look at who’s really winning here.
Black Rockck collects management fees on over 10 trillion, even at 0.5% management fees. That’s $50 billion a year in revenue. They don’t care if your retirement fund loses money in a Taiwan war.
They already got paid. And China, multiple sources confirm China’s been using these American investments to fund companies building weapons for the people’s liberation army.
The House Select Committee on the Chinese Communist Party found Black Rockck invested over $429 million across five funds into Chinese companies that act directly against the interests of the
United States. Get this.
MSCI, the index provider that Black Rockck and others use, has over 40 companies on their indexes that are on US government red flag lists, banned, sanctioned, and your index fund owns them anyway.
Here’s where it gets real. Because the data tells a story Wall Street doesn’t want you to see. According to State Street’s own analysis from March 2025, China makes up roughly 30% of the MCI emerging
markets index. Think about what that means. If you own any emerging markets fund in your 401k, there’s a good chance 30% of its in China.
The MSCI All Country World Investable Market Index has 46 trillion benchmark to it. And according to industry reports, it’s got Your Retirement Money at Risk $2.4% exposure to Chinese securities.
That’s over $110 billion in passive index fund money flowing to China automatically every day. But check out the trend.
Bloomberg data from October 2024 shows China’s stock markets hit 5-year lows in February 2024. The Hangen Index and CSI 300 had been rangebound all year until September when China
announced massive stimulus. Both indices surged nearly 20% then crashed back down over 10%. You know what that tells me?
Volatility, extreme risk. But your fund manager isn’t mentioning that in the prospectus. Here’s historical context. Remember 2008 before the financial crisis. Wall Street was telling everyone
mortgagebacked securities were old AA rated super safe. We know how that ended.
This feels the same. Wall Street saying China risk is like any other emerging market risk right up until it all implodes. And look at this pattern.
According to reports from the Council on Foreign Relations published in January 2025, China’s retirement age population will surpass the entire US population by 2040. That’s a demographic crisis.
Their pension systems underfunded, their real estate markets collapsing their debt to GDP ratios exploding. But Black Rockck’s ESG rating for its China fund. Same as its US fund.
Even though China emits more CO2 than the US or Europe and Japan combined while committing genocide, the math doesn’t work.
the story doesn’t work and 17 states just called them out on it. Now, let me show you what China is really doing here because this is strategic genius from Beijing’s perspective.
China’s not playing checkers. They’re playing go the ancient Chinese strategy game where you slowly surround your opponent until they can’t move.
That’s exactly what’s happening with these investments. According to testimony before the House Select Committee that multiple sources cited, Following the Money: $73 Billion Trail
China uses something called a golden share. It’s typically just 1% ownership, but it gives the Chinese Communist Party disproportionate control over any company.
When China buys these golden shares, they can force private companies to do whatever Beijing wants. So, here’s the strategy. Get Wall Street hooked on Chinese market access.
Black Rockck wants to sell to 1.4 billion Chinese investors. They need Beijing’s approval. JP Morgan wants to operate in Shanghai. They got to play ball. Then, China uses
that access as control. Reports confirm JP Morgan was ordered to stop publishing certain economic data in 2022.
You think that’s where it ended? No way. China’s got Wall Street by the throat. And Wall Street’s response is to bet more American retirement money on Chinese success.
But there’s a deeper game happening. According to geopolitical analysts tracking bricks expansion, China’s working to replace the dollar as the global reserve currency.
They’re using these American investments to build up their economy, their military, their technology, all while American asset managers collect fees.
And check this out. The Peterson Institute data shows US average tariff rates on Chinese goods went from 3.1% in January 2018 to 19.3% by 2020.
Trade war, right? But during that same period, Black Rockck was recommending Americans increase their China exposure. Think about that logic. The US government’s putting up barriers.
Our military is preparing for a potential Taiwan conflict. Our intelligence agencies are screaming about Chinese espionage and black rocks saying, “Invest more Russia’s watching this playbook.
Iran’s watching.” Every adversary sees that America’s financial system can be weaponized against itself.
Who Really Benefits From This
When Ukraine got invaded, investments in Russia tanked overnight. Missouri’s state treasurer said that’s exactly why they’re divesting from China now.
Defensive preparation. This is economic warfare and Wall Street’s fighting for the other side.
Here’s what keeps me up at night about this whole situation. First, the US dollar. For 80 years, the dollar has been the global reserve currency because the world trusted America’s financial system.
But when;
America’s own asset managers are betting against American interests, the trust evaporates.
According to JP Morgan’s own 2025 outlook published in November 2024, they’re expecting continued volatility in Chinese markets and potential tariff escalation.
Even JP Morgan’s hedging their bets now, but your pension fund still fully exposed. Second, there’s the Taiwan scenario. Multiple military analysts have suggested China might move
on Taiwan by 2027. If that happens, every dollar in Chinese investments gets frozen or wiped out overnight.
The 17 state AGs are explicitly citing this risk. We’re talking about $73 billion in pension money potentially vanishing.
That’s teacher retirements, police pensions, firefighter benefits gone. But here’s the bigger economic threat. Contagion, according to financial stability reports. MSCI has $13 trillion
benchmark to its products. Black Rockck’s got 11.6 trillion under management. If China investments collapse, it doesn’t just hit China funds.
It hits global index funds, emerging market funds, international diversification funds, your safe target date retirement fund.
It’s probably got China exposure through three different index allocations.
Third, consider the sectors. Technology companies are heavily invested in Chinese manufacturing. Apple, Microsoft, Tesla, China’s Strategic Game Plan they’ve all got massive China exposure.
If there’s a conflict, US tech supply chains collapse. Your stock portfolio takes a double hit. Once from direct China investments, once from US companies that can’t operate without China,
and Wall Street knew all this.
The state AG’s letters point out that these risks were material and should have been disclosed. But they weren’t because disclosure would have scared investors away and that would have cost black rockck fees. This is putting profits over patriotism at a scale we’ve never seen.
You want to understand where this is heading? Look at history because we’ve absolutely seen this movie before.
1930s Germany. American companies Ford, GM, IBM, they all had major investments in Nazi Germany right up until Pearl Harbor forced them to choose sides.
They made huge profits helping build Germany’s industrial base. Then came the war and those investments either got seized or became worthless.
Sound familiar? Or look at 1971. Nixon shocked the world by opening China and going off the gold standard simultaneously.
Everyone said it was brilliant strategy, cheap manufacturing, huge market access.
For 50 years, that bet paid off. But the price was China becoming an economic and military superpower that now threatens US dominance.
According to historical analysis, that’s exactly what’s happening again. We’re at the end of a 50-year cycle.
China’s no longer the cheap manufacturer. They’re the competitor. They’re not trying to integrate into the American order.
They’re trying to replace it. The parallel to 2008 is even more direct. Remember what happened? Wall Street was packaging toxic mortgages into AAA rated
What Keeps Experts Up at Night securities. Everyone said housing prices never go down. And these derivatives spread risk. And then it all collapsed and taxpayers bailed out the banks while
millions lost their homes.
Now it’s China’s the second largest economy and diversification requires emerging market exposure. Well, same playbook, different crisis. But here’s what’s different this time.
In 2008, the government could print money and bail everyone out. If China investments collapse because of war, there’s no bailout. Those assets are gone. Frozen by Beijing or worthless
because of sanctions.
Um, you know who won historically in these scenarios. The people who got out early, 1930s, investors who pulled out of Germany before the war kept their money.
2007, investors who saw the housing bubble coming and sold avoided the crash. Right now, five states have already mandated pension investment from China, Indiana, Florida, Missouri, Oklahoma,
and Kansas.
According to Politico’s July 2024 reporting, more states are considering it. They’re reading the historical playbook and making the defensive move.
Let me walk you through what I think happens next because the timeline here is critical.
In the next 3 to 6 months, first thing, watch that March 10th deadline. Bloomberg and multiple outlets reported that’s when Black Rockck, JP Morgan, Goldman Sachs, Morgan Stanley,
State Street, and Invesco have to respond to the state AG’s questions if they comply.
We’ll see internal documents showing what they really knew about China risks and when, if they don’t comply, legal subpoenas start.
Historical Parallels: 2008 & 1930s flying.
Either way, this goes public in a big way.
Second, watch Congress. The House Select Committee on the Chinese Communist Party has been investigating this for over a year.
According to CNN’s reporting from August 2023, they found over $6.5 billion flowing to 63 companies linked to Chinese military or human rights abuses.
That investigation is accelerating now.
Third, watch state pension funds. Texas Governor Greg Abbott already directed state agencies to divest from China. More Republican governors are likely to follow,
especially with Trump back in office pushing 60% tariffs on Chinese goods.
Your move?
Check your 401k and IRA. Look at your target date funds and index funds. If they’ve got emerging markets exposure, you’ve probably got China exposure.
Talk to your financial adviser now before this becomes a crisis. Over the next 6 to 18 months, here’s the most likely scenario.
Trump’s administration ramps up China pressure. According to JP Morgan’s analysis, we’re looking at potential 60% tariffs on Chinese imports.
That triggers Chinese retaliation, markets get volatile, China funds drop 20, 40%, but here’s the thing.
Passive index funds keep automatically buying Chinese stocks because that’s how index funds work.
Your money keeps flowing in even as values collapse. The Federal Reserve has to make a choice. Do they support markets which helps China investments or do they support the dollar which means
higher rates and lower asset prices based on 2018 2020 trade war patterns?
They’ll try to thread the needle and probably fail at both. State level devestment accelerates. Reports suggest Timeline: What Happens Next 10 to 15 more states could mandate pension fund investment
by mid 2026.
That creates a selling stampede. Chinese asset values drop further. Best case, China backs down on Taiwan threats, implements economic reforms, and markets stabilize at lower levels.
You take a 20 30% hit on China exposure, but avoid total loss.
Worst case, Taiwan conflict starts. All Chinese investments freeze. 73 billion in pension money vanishes. Stock markets crash globally. We’re looking at 2008 level crisis. Most likely case slowed deterioration.
Chinese economy weakens.
American investments slowly bleed value. No single catastrophic moment. just death by a thousand cuts over 12 18 months.
Looking out two to five years, here’s where we get to the new world order. Best case scenario, America successfully decouples from China economically.
Manufacturing moves to Mexico, India, Vietnam. Chinese investments lose value, but don’t collapse entirely.
Black Rockck and JP Morgan take reputational hits and regulatory penalties. Investors learn a costly lesson about geopolitical risk.
Worst case, China achieves regional dominance, takes Taiwan, solidifies alternative trade block with Russia, Iran, Brics nations, dollar loses reserve currency status. American
asset managers that bet on China actually win because China becomes the dominant economy.
But America loses its global financial position. Most likely bifurcated world. China dominates Asia.
America dominates the Americas in Europe. Africa and Middle East become contested zones.
Global trade shrinks. Supply chains regionalize. In this How to Protect Your 401k scenario, Chinese investments become like Russian investments after Ukraine.
Not worthless, but not accessible. They sit on balance sheets marked down 70 80%.
Pension funds have to explain to retirees why their benefits are 15 20% lower than projected. Black Rockck and JP Morgan face congressional hearings.
Some executives might face securities fraud charges for misrepresenting risks, but they’ll probably settle for massive fines and keep operating.
The real losers, the 2 million Kalpers members, the 1.2 2 million New York State employees, the teachers, police officers, and firefighters who trusted Wall Street with their retirement security.
Look, here’s the bottom line.
17 states just told Wall Street that the game is up. They’ve connected the dots between Chinese military buildup, genocide, market manipulation, and American retirement savings, and they’redemanding answers.
This is bigger than your portfolio. This is about whether America’s financial system works for Americans or for whoever pays the highest fees to asset managers.
Black Rockck’s managing 11.6 trillion, that’s power. That’s influence. But when they use that power to bet against American interests while collecting fees from American workers, that’s betrayal.
The historical parallel is clear. We’re at the end of a 50-year experiment with Chinese integration. Just like 1971 was.
Subscribe for Updates & Next Video the beginning. 2025 is the reversal. The only question is whether we manage this transition strategically or stumble into catastrophe.
For you personally, this affects your retirement security. It affects your kids’ future. It affects America’s position in the world.
The 17 state AGs are doing something rare. They’re standing up to Wall Street and demanding transparency. They’re trying to protect their citizens retirement money before it’s too late.
Whether they succeed depends partly on pressure from people like you. This isn’t just a financial story. It’s a power struggle over who controls America’s economic future.
In the next video on the Finance Chronicle, I’m going to dive deeper into how China is using American investment money to build their military and what that means for the next potential conflict.
The data is even more shocking than what we covered today. I’m also going to break down exactly how to check your own 401k and IRA for China exposure because most people don’t even know they
have it. I’ll show you the specific fund names to watch for and what alternatives exist.
And I’ll be covering Trump’s tariff strategy and whether 60% tariffs on Chinese goods could actually work or if they’ll just crash American markets, that timeline’s accelerating faster than
most people realize.
If this video opened your eyes to what’s really happening with your retirement money, hit that subscribe button right now. 97% of you watching aren’t subscribed yet
and you’re missing the deep analysis that could protect your financial future.
Drop a comment. Do you have China exposure in your retirement accounts? Did you know about it before watching this?
I read every comment and I’ll answer your questions on the Finance Chronicle.
Next video drops in 3 days. Until then, check your accounts,call your financial adviser, and remember, Wall Street works for whoever pays them.
Make sure that’s you.