Today in Washington, D.C., the House Select Committee on China, led by Chairman John Moolenaar, issued a formal request to JPMorgan Chase & Co. CEO Jamie Dimon and Bank of America CEO Brian Moynihan. The request is for both banks to withdraw from their involvement in the upcoming initial public offering (IPO) of Contemporary Amperex Technology Co., Limited (CATL) in Hong Kong.
The Department of Defense has designated CATL as a “Chinese military company” in accordance with Section 1260H of the National Defense Authorization Act. The committee's letters to the banks express concerns that their participation in the CATL IPO could aid the Chinese Communist Party in building up its military capabilities and contribute to ongoing human rights violations.
The letters specifically mention CATL’s alleged connections to the Xinjiang Production and Construction Corps (XPCC). The XPCC is a sanctioned paramilitary organization that has been implicated in the genocide of Uyghur Muslims. Furthermore, CATL is accused of playing a role in upgrading China’s submarine fleet with advanced lithium-ion batteries.
Chairman Moolenaar stated, "If JPMorgan and Bank of America proceed with this IPO, they risk complicity in underwriting genocide, undermining American industry, and endangering U.S. service members.” He highlighted the serious nature of the national security threats, as well as what he termed due diligence failures on the part of the banks. Moolenaar raised concerns about the banks' pursuit of the deal given the low fee structure and the defense ties of CATL.
He emphasized, "As Chairman, I am closely monitoring how major financial institutions engage with companies linked to the Chinese Communist Party. The House Select Committee on China is actively examining these relationships, and we urge JPMorgan and Bank of America to prioritize national security and human rights in their decision-making."
