By Julia Horowitz, CNN Business

George Soros, the billionaire financier and philanthropist, thinks BlackRock has made a huge miscalculation on China.

What’s happening: Soros called out the world’s largest asset manager in an op-ed published by the Wall Street Journal on Monday titled “BlackRock’s China Blunder.”

BlackRock recently started offering investment products to individual Chinese investors as the country’s first entirely foreign-owned fund management firm. But Soros slammed the move, claiming the company “appears to misunderstand President Xi Jinping’s China.”

“Pouring billions of dollars into China now is a tragic mistake,” he wrote. “It is likely to lose money for BlackRock’s clients and, more important, will damage the national security interests of the [United States] and other democracies.”

Breaking it down: Soros highlighted Xi’s recent crackdown on private business, which he sees as proof that “the regime regards all Chinese companies as instruments of the one-party state.” He also referenced “an enormous crisis brewing in China’s real estate market,” and Xi’s efforts to redistribute wealth. These trends, he said, do “not augur well for foreign investors.”

Soros also thinks that BlackRock’s initiative is a threat to democracies because “the money invested in China will help prop up President Xi’s regime, which is repressive at home and aggressive abroad.”

BlackRock declined to…

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