politics
Congressional Report Says U.S. Banks Underwrote Offerings for Chinese Battery Firm CATL
A House committee report states that JPMorgan Chase and Bank of America helped CATL raise capital through stock offerings after the Pentagon placed the company on its list of Chinese military-linked firms. The report says the banks conducted due diligence but accepted CATL's statements that it had no military ties. CATL maintains partnerships with several Western automakers.
May 21, 11:00 AM·1m read1 source
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A congressional report released this week states that JPMorgan Chase and Bank of America underwrote stock offerings for Chinese battery manufacturer CATL after the Pentagon designated the company under its Section 1260H list of Chinese military-linked firms in January 2025.
The House Select Committee on the Chinese Communist Party report says the banks helped CATL raise billions of dollars from global investors through a Hong Kong IPO and a later offering. U.S. law.
The report states that JPMorgan and Bank of America accepted CATL's assertions that it had no military ties despite what the committee described as incomplete responses during due diligence. It says CATL provided identical answers to multiple questions about ties to the People's Liberation Army and dual-use technologies.
U.S. restriction lists. It states that the banks made the choice to proceed with the transactions to earn fees even though the Pentagon had flagged the company.
U.S. law and sanctions policies and that CATL has lawfully partnered with American companies to provide battery technology. U.S. government. CATL maintains partnerships with Ford, Stellantis, BMW, Volkswagen and Tesla. Ford is building a $3 billion battery plant in Michigan using CATL technology through a licensing arrangement.
U.S. financial institutions from underwriting offerings for blacklisted Chinese entities and urges the Treasury Department to impose stronger sanctions on CATL.
