Two American banks, JP Morgan Chase and Bank of America, reportedly helped Contemporary Amperex Technology Co. Ltd. (CATL), a Chinese battery giant, raise funds through an initial public offering in Hong Kong, even after the company was labeled a “Chinese military company” by the US government. The House Select Committee on the Chinese Communist Party criticized the banks for prioritizing profits over national security concerns.
The committee’s investigation highlighted that the banks underwrote CATL’s IPO in May 2025, despite warnings about the company’s alleged ties to China’s military and forced labor networks in Xinjiang. Select Committee Chairman John Moolenaar emphasized the need for policy changes to prevent such actions in the future, stating that American banks should not support Chinese military companies in raising capital.
CATL, known as the world’s largest battery manufacturer, was placed on the Pentagon’s list in January 2025 due to its suspected involvement in China’s military-civil fusion strategy. The report revealed that both banks relied on CATL’s claims that the military company designation was incorrect and overlooked concerns regarding its connections to the Chinese military.
The congressional investigators pointed out that CATL failed to provide satisfactory responses to due diligence inquiries about its ties to the People’s Liberation Army and military-related entities. Despite this, Bank of America and JP Morgan accepted CATL’s assurances and proceeded with the IPO. The report also alleged that CATL had business relationships with Chinese entities under US restrictions, including Huawei and China State Shipbuilding Corporation.
