Great Lakes Wire

John Moolenaar, U.S. Representative and chairman of the House Select Committee on the Chinese Communist Party (CCP), has raised concerns about JPMorgan's involvement in CATL's Initial Public Offering (IPO). Moolenaar said that this connection links American finance to China's military and human rights issues. His statement was made in a letter.

"We are writing to express significant concerns regarding JPMorgan Chase & Co. (JPMorgan)'s involvement in the upcoming Hong Kong initial public offering (IPO) of Contemporary Amperex Technology Co., Limited (CATL," said John Robert Moolenaar, according to Select Committee on the CCP. "If JPMorgan proceeds with underwriting CATL's IPO, it risks supporting a company linked to the ongoing genocide of Uyghur Muslims in Xinjiang, the erosion of American manufacturing, and the endangerment of U.S. service members. 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 and is directly tied to the ongoing genocide of Uyghur Muslims in Xinjiang. By underwriting this IPO, JPMorgan is exposing itself and American investors to serious regulatory, financial, and reputational risks."

According to the U.S. Department of Defense, it updated its Section 1260H list of "Chinese military companies" on January 7, 2025. This update is part of an annual requirement aimed at highlighting entities associated with the People's Republic of China's (PRC) military-civil fusion strategy. The Department of Defense explains that while inclusion on this list does not automatically impose sanctions, it serves to inform the public and U.S. stakeholders. On the same day, CATL was added to this list, potentially prompting increased due diligence and reputational scrutiny by U.S. firms.

EVmagz reports that global electric vehicle (EV) battery installations reached 894.4 gigawatt-hours (GWh) in 2024, marking a 27.2% increase from the previous year. During this period, CATL supplied 339.3 GWh, securing a 37.9% share of the global market—the highest for any company worldwide. According to EVmagz, CATL was the only manufacturer exceeding a 30% market share in 2024, with BYD following at 17.2%.

The Wall Street Journal states that U.S. lawmakers have subpoenaed the CEOs of JPMorgan and Bank of America after their involvement in underwriting CATL's Hong Kong IPO, which raised $5.2 billion and became the largest listing of 2025. The House Select Committee cited this action as exposing these banks to "serious regulatory, financial, and reputational risks," particularly given CATL's inclusion on a U.S. Department of Defense list for companies with military links. These subpoenas indicate a shift from warning to legal inquiry, signifying an escalation in congressional oversight concerning U.S. financial institutions' roles in transactions involving entities like CATL.

Jamie Dimon has held multiple leadership roles within JPMorgan Chase & Co., serving as Chairman since December 31, 2006, and as Chief Executive Officer and President since December 31, 2005. Before JPMorgan's merger with Bank One in 2004, Dimon was Chairman and CEO of Bank One and previously held senior positions at Citigroup, Travelers Group, Commercial Credit Company, and American Express.