Capitol News

U.S. lawmakers have issued subpoenas to JPMorgan Chase and Bank of America over their role in underwriting a $5.2 billion initial public offering (IPO) for Contemporary Amperex Technology Co. Ltd. (CATL), a Chinese battery manufacturer identified by the U.S. government as linked to China's military-civil fusion strategy.

CATL, the world’s largest electric vehicle battery manufacturer, is identified as a key player in China’s military-civil fusion strategy, which integrates commercial technology with military applications.  

Staff for U.S. Rep. John Moolenaar, R-Mich., chairman of the House Select Committee on the Chinese Communist Party, declined to comment to the Capitol Times and referred inquiries to a July 24 press release.

Bank of America CEO Brian Moynihan (left) and JPMorgan Chase CEO Jamie Dimon (right) face scrutiny after both banks were subpoenaed over their roles in the $5.2 billion IPO of Chinese battery giant Contemporary Amperex Technology Co., Limited. | Wikimedia Commons / Benjamin Applebaum; Wikimedia Commons / Financial Times

In the release, Moolenaar expressed concern over the banks’ involvement.

“Congress has a duty to ensure U.S. capital isn’t funding the Chinese military,” Moolenaar said in the press release. “That’s why I’ve issued subpoenas to the CEOs of JPMorgan and Bank of America. We asked for answers months ago. They stonewalled. Wall Street shouldn’t be underwriting Chinese military companies—and the American people deserve transparency.”

The press release also quoted the subpoena text: “CATL’s industry-leading role in battery manufacturing—a sector explicitly targeted by China’s state-driven military-civil fusion policy—poses significant U.S. investor and national security risks.”

According to the Wall Street Journal, the U.S. Department of Defense added CATL to its list of military-linked companies in January.

In April, the committee warned both banks to withdraw from the IPO, but the offering proceeded. Since then, CATL’s shares have increased 65 percent above the IPO price.

The subpoenas seek documents the banks allegedly failed to provide following the committee’s earlier request. 

The committee says the original request, made in April, resulted in minimal and largely public responses. Bank of America submitted 10 documents, nine of which were public. JPMorgan submitted one public document.

The committee has set an Aug. 8 deadline for full compliance.

The House Select Committee on the Chinese Communist Party, established in January 2023, is a U.S. House of Representatives panel focused on investigating and countering the influence of the CCP. 

The committee’s investigation comes amid growing U.S.-China tensions over technology, trade and national security, with lawmakers scrutinizing financial institutions’ ties to Chinese firms linked to the military.

In a related matter, Green Charter Township, Mich., located in Moolenaar’s 2nd Congressional District, is in a legal dispute with Chinese battery manufacturer Gotion Inc. over a $2.36 billion electric vehicle battery plant project.

The township is appealing a court ruling that requires it to honor a development agreement, including the extension of municipal water services for the factory. The dispute followed a local election in which residents voted out a township board that had approved the project. Concerns have been raised about Gotion’s reported references to CCP loyalty in its corporate bylaws and potential security implications.

The Gotion project has drawn national attention, with critics including Vice President JD Vance opposing $175 million in state incentives offered to the company.