It’s hard for the captains of American finance to quit China. They’ve wanted the Chinese securities market opened to them and for years worked the back rooms in Washington and Beijing to make it happen. Today, U.S. financial firms can invest directly in Shanghai and Shenzhen-listed stocks and solicit business in China without needing a domestic partner. It was a dream realized.
It’s been tough going since 2016 with investment restrictions imposed by both Presidents Trump and Biden. And now, the House Select Committee on the Chinese Communist Party has thrown a wrench into the plans of two of Wall Street’s most powerful banks.
On April 17, Rep. John Moolenaar (R-MI-2), the Chairman of the House Select Committee on the CCP, sent JP Morgan and Bank of America a letter demanding they withdraw as part of the team of underwriters of the initial public offering of Contemporary Amperex Technology Co. (CATL), the world’s leading EV battery brand. The Department of Defense designated CATL as a “Chinese military company” under Section 1260H of the National Defense Authorization Act on January 7.
Their concern: CATL’s advanced lithium-ion batteries may one day be used to power China’s submarine fleet, replacing older battery models.
While the DoD’s designation bars U.S. government agencies from contracting with CATL, it doesn’t impose legal restrictions on private sector deals—but it does trigger enhanced scrutiny.
Ford’s investment at its new Blue Oval Battery Park in Michigan with CATL to be its EV battery producer has drawn fire from lawmakers. Marco Rubio (ex-Florida Senator now Secretary of State) said the Ford-CATL deal would “deepen U.S. reliance on Chinese EV manufacturers” at a time when the industry is being pushed to make and sell EVs. Sen. Joe Manchin (D-WV), House Ways & Means Committee Chairman Jason Smith (R-MO-8) and former China Committee Chairman Mike Gallagher were also opposed. Despite this, Ford is proceeding—albeit on a reduced scale.
So the question now: will pressure from Congress force JPMorgan and Bank of America to back out of CATL’s $5 billion Hong Kong IPO this spring?
A First Test of Trump’s America First Investment Policy
As underwriters, JPMorgan and Bank of America are required to conduct due diligence on CATL, assess political and financial risks, set the IPO price, and organize investor roadshows in Hong Kong. Though CATL will be listed there, the IPO’s H-shares will be accessible to U.S. funds and retail investors holding emerging market index funds.
Moolenaar’s letters to CEOs Jamie Dimon and Brian Moynihan cite Trump’s America First Investment Policy, which instructs federal agencies to avoid enabling U.S. capital flows into Chinese military-linked or human rights–abusing firms. While not an executive order, it represents a policy shift with wide-reaching implications.
CATL’s alleged relationship with XPCC—a company on the U.S. government’s Uyghur Forced Labor list—adds to lawmakers’ concerns. The committee argues that underwriting this IPO directly undermines the intent of the administration’s investment policy.
CATL’s IPO is the exact kind of investment President Trump’s America First Investment Policy was designed to block. Although not an Executive Order, this policy instructs Executive Branch agencies to follow its intent—representing a history-making breakthrough in finally requiring a near-term end to American investment banks funding China corporate titans. CATL is the world’s No. 1 EV battery maker and held a roughly 38% market share in 2024, followed by BYD, also from China.
Perhaps the biggest problem with the underwriting of this stock in Hong Kong is it gives China free lobbying by major Wall Street institutions. If JPMorgan and Bank of America want to be big players in China’s investment banking market, it is best that they work to cool tensions. Participation could align JPMorgan and Bank of America with Beijing’s strategic interests at a time when Washington is recalibrating its approach.
Last year, CPA released a “case study” report to Congress that highlights the growing influence of the CCP over U.S. financial firms. The report titled “Inside the Wire: Wall Street’s Joint Ventures with the Chinese Communist Party” reveals how major U.S. financial firms have formed joint ventures with state banks, giving Beijing the opportunity to influence these companies over to its way of thinking on geopolitical matters like global finance and trade. These partnerships give the CCP leverage that poses a serious risk to U.S. policy makers. Having Wall Street on your side is a powerful ally, and China has counted on that within varying degrees of success for much of the past 25 years.
Roger Robinson Jr., a CPA senior advisor and former National Security Council Senior Director of International Economic Affairs for President Ronald Reagan, detailed these threats in a Fox Nation documentary series titled, “Underwriting the Enemy,” hosted by Fox Business anchor Maria Bartiromo. CPA’s work, which was covered in this program, helped catalyze the issuing of the President’s investment policy memorandum.
To date, Congress has struggled to pass legislation that would hinder U.S.-China investment. Wall Street’s lobbying clout has kept lawmakers largely hands-off. But with Trump’s investment doctrine now influencing policy decisions, the tide could turn.
Earlier this month, Sen. Rick Scott (R-FL) re-introduced five bills that would make it harder to invest in China. One bill called Trading and Investing with Clear Knowledge and Expectations about Risk Act, first floated in March 2023, would require American asset managers to add risk disclosures for Chinese Variable Interest Entities (VIEs)—offshore structures that obscure direct equity ownership in Chinese firms.
Alibaba (BABA), listed on the Nasdaq, is a prime example of a VIE. Investors don’t actually own shares in Alibaba’s Chinese business but rather a Cayman Islands holding company that contracts with it. These contracts are not enforceable under Chinese law—a point lawmakers say deserves more visibility.
CPA has long advocated for capital market reforms to prevent American savings from financing China’s industrial rise. These bills, and others, continue to shape the debate.
Will Wall Street Blink?
JP Morgan and Bank of America will likely remain CATL underwriters.
Chairman Moolenaar gave Moynihan and Dimon mainder of the month to explain why they chose to continue, assuming that is what they do.
Moolenaar requested internal communications—memos, emails, and risk reviews—related to CATL’s IPO, including any instructions by Chinese officials or CATL executives to omit the DoD designation from investor disclosures.
He also raised the specter of a Foreign Agents Registration Act (FARA) investigation, suggesting that underwriting the IPO could amount to acting on behalf of a foreign principal linked to the Chinese military.
The company’s pursuit of CATL, despite its alleged defense ties, “adds to concerns over risk and regulatory oversight,” Moolenaar said. “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.”
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
Wall Street Underwrites China’s Top EV Battery Maker—House China Committee Pushes Back
It’s hard for the captains of American finance to quit China. They’ve wanted the Chinese securities market opened to them and for years worked the back rooms in Washington and Beijing to make it happen. Today, U.S. financial firms can invest directly in Shanghai and Shenzhen-listed stocks and solicit business in China without needing a domestic partner. It was a dream realized.
It’s been tough going since 2016 with investment restrictions imposed by both Presidents Trump and Biden. And now, the House Select Committee on the Chinese Communist Party has thrown a wrench into the plans of two of Wall Street’s most powerful banks.
On April 17, Rep. John Moolenaar (R-MI-2), the Chairman of the House Select Committee on the CCP, sent JP Morgan and Bank of America a letter demanding they withdraw as part of the team of underwriters of the initial public offering of Contemporary Amperex Technology Co. (CATL), the world’s leading EV battery brand. The Department of Defense designated CATL as a “Chinese military company” under Section 1260H of the National Defense Authorization Act on January 7.
Their concern: CATL’s advanced lithium-ion batteries may one day be used to power China’s submarine fleet, replacing older battery models.
While the DoD’s designation bars U.S. government agencies from contracting with CATL, it doesn’t impose legal restrictions on private sector deals—but it does trigger enhanced scrutiny.
Ford’s investment at its new Blue Oval Battery Park in Michigan with CATL to be its EV battery producer has drawn fire from lawmakers. Marco Rubio (ex-Florida Senator now Secretary of State) said the Ford-CATL deal would “deepen U.S. reliance on Chinese EV manufacturers” at a time when the industry is being pushed to make and sell EVs. Sen. Joe Manchin (D-WV), House Ways & Means Committee Chairman Jason Smith (R-MO-8) and former China Committee Chairman Mike Gallagher were also opposed. Despite this, Ford is proceeding—albeit on a reduced scale.
So the question now: will pressure from Congress force JPMorgan and Bank of America to back out of CATL’s $5 billion Hong Kong IPO this spring?
A First Test of Trump’s America First Investment Policy
As underwriters, JPMorgan and Bank of America are required to conduct due diligence on CATL, assess political and financial risks, set the IPO price, and organize investor roadshows in Hong Kong. Though CATL will be listed there, the IPO’s H-shares will be accessible to U.S. funds and retail investors holding emerging market index funds.
Moolenaar’s letters to CEOs Jamie Dimon and Brian Moynihan cite Trump’s America First Investment Policy, which instructs federal agencies to avoid enabling U.S. capital flows into Chinese military-linked or human rights–abusing firms. While not an executive order, it represents a policy shift with wide-reaching implications.
CATL’s alleged relationship with XPCC—a company on the U.S. government’s Uyghur Forced Labor list—adds to lawmakers’ concerns. The committee argues that underwriting this IPO directly undermines the intent of the administration’s investment policy.
CATL’s IPO is the exact kind of investment President Trump’s America First Investment Policy was designed to block. Although not an Executive Order, this policy instructs Executive Branch agencies to follow its intent—representing a history-making breakthrough in finally requiring a near-term end to American investment banks funding China corporate titans. CATL is the world’s No. 1 EV battery maker and held a roughly 38% market share in 2024, followed by BYD, also from China.
Perhaps the biggest problem with the underwriting of this stock in Hong Kong is it gives China free lobbying by major Wall Street institutions. If JPMorgan and Bank of America want to be big players in China’s investment banking market, it is best that they work to cool tensions. Participation could align JPMorgan and Bank of America with Beijing’s strategic interests at a time when Washington is recalibrating its approach.
CPA Report Details How BlackRock And MSCI Funnel Billions of U.S. Investor Capital to CCP And PLA-Linked Companies
Read More »Last year, CPA released a “case study” report to Congress that highlights the growing influence of the CCP over U.S. financial firms. The report titled “Inside the Wire: Wall Street’s Joint Ventures with the Chinese Communist Party” reveals how major U.S. financial firms have formed joint ventures with state banks, giving Beijing the opportunity to influence these companies over to its way of thinking on geopolitical matters like global finance and trade. These partnerships give the CCP leverage that poses a serious risk to U.S. policy makers. Having Wall Street on your side is a powerful ally, and China has counted on that within varying degrees of success for much of the past 25 years.
Roger Robinson Jr., a CPA senior advisor and former National Security Council Senior Director of International Economic Affairs for President Ronald Reagan, detailed these threats in a Fox Nation documentary series titled, “Underwriting the Enemy,” hosted by Fox Business anchor Maria Bartiromo. CPA’s work, which was covered in this program, helped catalyze the issuing of the President’s investment policy memorandum.
To date, Congress has struggled to pass legislation that would hinder U.S.-China investment. Wall Street’s lobbying clout has kept lawmakers largely hands-off. But with Trump’s investment doctrine now influencing policy decisions, the tide could turn.
Earlier this month, Sen. Rick Scott (R-FL) re-introduced five bills that would make it harder to invest in China. One bill called Trading and Investing with Clear Knowledge and Expectations about Risk Act, first floated in March 2023, would require American asset managers to add risk disclosures for Chinese Variable Interest Entities (VIEs)—offshore structures that obscure direct equity ownership in Chinese firms.
Alibaba (BABA), listed on the Nasdaq, is a prime example of a VIE. Investors don’t actually own shares in Alibaba’s Chinese business but rather a Cayman Islands holding company that contracts with it. These contracts are not enforceable under Chinese law—a point lawmakers say deserves more visibility.
CPA has long advocated for capital market reforms to prevent American savings from financing China’s industrial rise. These bills, and others, continue to shape the debate.
Will Wall Street Blink?
JP Morgan and Bank of America will likely remain CATL underwriters.
Chairman Moolenaar gave Moynihan and Dimon mainder of the month to explain why they chose to continue, assuming that is what they do.
Moolenaar requested internal communications—memos, emails, and risk reviews—related to CATL’s IPO, including any instructions by Chinese officials or CATL executives to omit the DoD designation from investor disclosures.
He also raised the specter of a Foreign Agents Registration Act (FARA) investigation, suggesting that underwriting the IPO could amount to acting on behalf of a foreign principal linked to the Chinese military.
The company’s pursuit of CATL, despite its alleged defense ties, “adds to concerns over risk and regulatory oversight,” Moolenaar said. “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.”
MADE IN AMERICA.
CPA is the leading national, bipartisan organization exclusively representing domestic producers and workers across many industries and sectors of the U.S. economy.
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