Great Lakes Wire

John Robert Moolenaar, Chairman of the House Select Committee on the Chinese Communist Party (CCP), expressed concerns over Bank of America's involvement with Contemporary Amperex Technology Co. Limited's (CATL) initial public offering (IPO), citing national security and human rights issues. This statement was made in an official letter.

"We are writing to express significant concerns regarding Bank of America's involvement in the upcoming Hong Kong initial public offering (IPO) of Contemporary Amperex Technology Co., Limited (CATL," said Robert Moolenaar, according to Select Committee on the CCP. "CATL's designation by the Pentagon under the 1260H List is intended to alert U.S. entities and investors about a company's affiliations with the People's Liberation Army (PLA) and broader Chinese state objectives. CATL maintains a close tier-one supplier relationship with the Xinjiang Production and Construction Corps (XPCC), a paramilitary entity of the Chinese state that operates forced labor camps. We urge Bank of America to withdraw from underwriting CATL's upcoming IPO."

According to Reuters, U.S. Representative John Moolenaar and other lawmakers formally urged JPMorgan Chase and Bank of America to withdraw from underwriting CATL's Hong Kong IPO. They cited significant regulatory, financial, and reputational risks due to the company's designation as a Chinese Military Company by the U.S. Department of Defense. The lawmakers warned that continued involvement could expose American investors to allegations of complicity in human rights abuses and military ties, reflecting broader Congressional concern over U.S. financial engagement with firms linked to the Chinese military.

Reuters also reported that CATL offered IPO underwriters unusually low fees; the base fee was just 0.2%, with a discretionary component bringing the total to approximately 0.6%, far lower than the industry standard of around 2%. These reduced fees prompted concerns among analysts about whether banks were sacrificing due diligence and compliance safeguards for a high-profile listing involving a Pentagon-designated Chinese military-linked company.

As reported by MarketWatch, CATL’s Hong Kong initial public offering in May 2025 raised approximately $4.6 billion, making it the largest IPO globally for that year. The offering was underwritten by major U.S. banks, including Bank of America, JPMorgan, and Goldman Sachs, despite CATL's appearance on the Pentagon’s list of companies with ties to the Chinese military. American retail investors were barred from directly participating in the IPO due to regulatory concerns, though questions remain about indirect U.S. financial exposure.

Moolenaar has represented Michigan’s 2nd congressional district in the House of Representatives since 2015. In 2024, he was appointed Chairman of the House Select Committee on Strategic Competition between the United States and the CCP, where he oversees investigations into Chinese economic, technological, and security threats. He has a background in science and public policy, placing him at the center of recent high-profile inquiries into U.S.-China financial and national security issues.