- Congress wants documents about how the banks helped CATL go public on the Hong Kong stock market.
- There are concerns that CATL may have connections to the Chinese military, which the US considers a national security risk.
The U.S. House of Representatives Select Committee on China has escalated its investigation into Wall Street’s involvement with Chinese companies by subpoenaing the CEOs of JPMorgan Chase and Bank of America, Reuters reported.
The committee is reportedly seeking documents and communications related to the underwriting of the initial public offering (IPO) of Contemporary Amperex Technology Co. Ltd. (CATL), China’s largest electric vehicle battery manufacturer.
The subpoenas, issued on Thursday and targeting JPMorgan CEO Jamie Dimon and Bank of America CEO Brian Moynihan, signal mounting congressional concern over potential national security risks linked to the IPO.
CATL’s listing on the Hong Kong stock exchange last year was a significant event in the global electric vehicle supply chain, but the U.S. government alleges that the company has ties to the Chinese military.
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Ties To Chinese Firm CATL Amid Security Concerns
The House panel said it requested information from both banks in April but has only received limited document production to date. Bank of America states it is cooperating with the committee, whereas JPMorgan declined to comment.
Rep. John Moolenaar, committee chairman, reportedly urged the banks to reconsider underwriting CATL due to national security and human rights concerns, including alleged ties to forced labor practices in China’s Xinjiang region.
The subpoenas set an August 8 deadline for compliance. The ongoing investigation underscores heightened U.S. scrutiny of Wall Street’s role in facilitating capital flows to Chinese firms flagged as strategic risks amid worsening U.S.-China relations.
The subpoenas mark a notable development in the increasingly fraught relationship between Wall Street and China. While U.S. regulations prevent government contracts with designated military-linked Chinese companies like CATL, there reportedly exists no outright ban on private financial dealings.
