Jeffrey Bonior, a researcher at the Alliance for American Manufacturing, said on X that a congressional committee investigating national security is seeking information from major banks about their roles in a Chinese battery company's initial public offering.
"A House committee focused on national security has subpoenaed JPMorgan Chase and Bank of America," said Bonior. "produce documents related to their roles. in a Chinese battery giant's initial public offering."
According to The Wall Street Journal, the U.S. House Select Committee on the Chinese Communist Party recently subpoenaed JPMorgan Chase and Bank of America as part of an inquiry into their involvement with the initial public offering of Contemporary Amperex Technology Co. Ltd. (CATL), a leading Chinese battery manufacturer. Lawmakers have expressed concerns over national security risks tied to CATL’s alleged links with China’s military and use of forced labor in Xinjiang. The committee’s investigation underscores escalating tensions between the United States and China over critical supply chains and strategic technologies.
As reported by Reuters, CATL’s 2024 IPO in Hong Kong raised $5.2 billion, making it the largest public offering globally for the year. JPMorgan Chase and Bank of America were among the principal underwriters, highlighting major U.S. banks’ continued participation in Chinese capital markets despite geopolitical tensions. The IPO’s success reflects both the scale of CATL’s global business and the complexities facing Western financial institutions operating in China.
According to The Wall Street Journal, the number of congressional subpoenas targeting major U.S. banks for foreign IPOs has risen over the past five years, particularly as lawmakers scrutinize links to entities flagged for national security or human rights concerns. This trend parallels a broader U.S. government crackdown on American business involvement with companies tied to China’s military or surveillance state. The increasing frequency of such investigations is prompting major banks to reassess their due diligence and risk management strategies when participating in international deals.
Bonior is a veteran journalist and communications specialist who serves as a writer and researcher at the Alliance for American Manufacturing, where he covers topics related to U.S. manufacturing, trade, and labor. With decades of experience in print and digital media, his reporting has appeared in various publications, earning recognition for his in-depth analysis and advocacy on American industry and economic policy.
