U.S. Rep. John Moolenaar (R-MI), chairman of the House Select Committee on China, is urging two major U.S. banks to withdraw from their role in the upcoming Hong Kong initial public offering (IPO).
In letters to the CEOs of JPMorgan Chase and Bank of America, Moolenaar demanded that the banks withdraw from their role in the IPO of Contemporary Amperex Technology Co., Limited.
The U.S. Department of Defense has designated CATL as a “Chinese military company” under Section 1260H of the National Defense Authorization Act.
The letters outline the concerns that the banks involvement in the IPO directly aids the Chinese Communist Party’s military buildup and ongoing human rights abuses.
Specifically, the committee cites CATL’s ties to the Xinjiang Production and Construction Corps (XPCC)—a sanctioned paramilitary entity involved in the genocide of Uyghur Muslims. It also cites the company’s role in modernizing China’s submarine fleet with advanced lithium-ion batteries.
“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,” Moolenaar wrote to the CEOsxr. “The letters outline serious national security threats and due diligence failures. The company’s reported aggressive pursuit of the CATL deal, despite its low fee structure and their defense ties, adds to concerns over risk and regulatory oversight. 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.”