Wall Street Money Fuels China’s Aircraft Carrier Breakthrough

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Despite US sanctions on China’s shipbuilding giant CSSC, American ETF funds continue to finance its projects, including the Fujian aircraft carrier equipped with advanced US-style catapult technology.

By TRH Global Affairs Desk

NEW DELHI, September 29, 2025 — The Chinese military this week released footage of its most advanced aircraft carrier, Fujian, launching and recovering naval aircraft—including the stealth J-35 fighter—using an electromagnetic catapult system once exclusive to the US Navy. Beijing has touted the sea trials as a “breakthrough” in naval aviation. Yet behind this milestone lies an uncomfortable reality: Wall Street money helped build it.

The National Security Index in a deep-drive report stated that “China CSSC Holdings, the state-owned enterprise behind Jiangnan Shipyard where Fujian was constructed, counts some of America’s largest exchange-traded funds among its investors.” “These include Vanguard, BlackRock’s iShares, Schwab, and others,” added the report.

Parent company China State Shipbuilding Corporation (CSSC) openly calls itself the “main force” in advancing Chinese naval power and has been blacklisted by the US Treasury as part of the Chinese Military-Industrial Complex.

The Fujian, weighing in at 80,000 tons, is the largest warship launched from Asia since World War II. Its electromagnetic catapult will allow Chinese naval aircraft to fly farther, heavier, and more frequently—extending Beijing’s reach across contested waters. “Analysts suggest the technology itself may have been acquired from the United States, raising further concerns about American capital indirectly underwriting the PLA Navy’s modernization,” noted the National Security Index in the report.

This case underscores the contradictions in US financial policy. On one hand, Washington sanctions Chinese defence giants; on the other, ordinary American investors—through broad-based ETFs—continue to funnel billions into them. While individuals may believe they are buying into “emerging markets,” their capital is strengthening China’s military.

The National Security Index argues that investors can diversify globally without financing adversary militaries. The Fujian sea trials show not only China’s growing naval power but also how Western finance can unintentionally accelerate it.

This article is for informational purposes only and not investment advice.

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