House Probe Accuses JPMorgan, BofA of Helping CATL Raise Billions After 2025 Pentagon Blacklist
Updated
Updated · Fox News · May 21
House Probe Accuses JPMorgan, BofA of Helping CATL Raise Billions After 2025 Pentagon Blacklist
1 articles · Updated · Fox News · May 21
A House China committee report says JPMorgan Chase and Bank of America helped CATL raise billions through a Hong Kong IPO and a later share sale after the Pentagon put the battery maker on its Section 1260H list in January 2025.
The report says the banks broke no U.S. law, but argues they chose fees over national-security warnings because the Pentagon designation carries reputational damage without broadly banning investment or underwriting.
JPMorgan and Bank of America defended their roles, saying CATL is not sanctioned, due diligence was conducted, and the company remains a key supplier to U.S. manufacturers and major automakers.
Chairman John Moolenaar called for legislation barring U.S. banks from underwriting blacklisted Chinese firms and urged Treasury to seek stronger sanctions tools against CATL.
The clash highlights Washington's wider dilemma: countering China military-linked companies while U.S. and European industry still relies heavily on Chinese battery technology, including Ford's $3 billion Michigan project using CATL technology.
With US EV goals reliant on Chinese batteries, can Washington afford to financially blacklist industry giant CATL?
As China conceals its military-civil fusion strategy, are US investors unknowingly funding a rival's technological rise?
Congressional Subpoenas Target JPMorgan, Bank of America for Underwriting Blacklisted Chinese Battery Giant CATL’s $7.7B IPO
Overview
In 2025, the U.S. House Select Committee on the CCP launched a major investigation into top banks like JPMorgan Chase and Bank of America, issuing subpoenas to their CEOs after the Pentagon blacklisted Chinese battery giant CATL for military ties. This move followed growing concerns in Congress about CATL and Gotion High-Tech’s alleged links to China’s military and forced labor. The blacklisting fueled legislative action, including the passage of a bill to restrict government purchases from such companies. These events highlight rising U.S. efforts to limit financial and supply chain exposure to Chinese firms seen as national security risks.