WASHINGTON, D.C. — The House Select Committee on the Chinese Communist Party found that JPMorgan Chase and Bank of America underwrote Chinese battery manufacturer CATL's Hong Kong initial public offering despite the Pentagon's designation of CATL as a Chinese military-linked firm. The report concludes that the banks helped CATL raise billions of dollars from global investors despite unresolved U.S. national security concerns.

The Pentagon added CATL to its Section 1260H list of Chinese military-linked firms in January 2025. The list identifies companies the War Department determines are tied to China's military or military-civil fusion strategy but does not broadly prohibit U.S. investment or commercial activity. JPMorgan Chase, Bank of America and Morgan Stanley subsequently participated in a second capital offering by CATL.

The report states, "To be clear, the banks broke no U.S. law and the transactions were not prohibited by U.S. law." The report also states, "But each bank made the choice to essentially disregard the U.S. government's Chinese military company designation to make millions of dollars." The report further states, "The banks trusted CATL's representations over the considered judgment of the U.S. government," and, "The deals were legal, so the banks proceeded."

The report alleges that the two banks accepted CATL's assertions that it had no links to China's military despite the Pentagon's conclusions and incomplete responses during due diligence. According to documents cited in the report, CATL provided identical responses to multiple JPMorgan questions concerning ties to the People's Liberation Army, dual-use technologies and military-linked entities. The committee cited publicly available evidence linking CATL to Chinese military-industrial entities, including relationships with companies on U.S. restriction lists and research collaborations involving defense-linked institutions.

Select Committee Chairman John Moolenaar, R-Mich., said, "My committee's investigation calls for serious policy changes to ensure what JPMorgan and Bank of America did never happens again. American banks must not help Chinese military companies raise money, because in doing so, they provide not only access to funding, but also legitimacy and credibility to companies that are helping our adversary build up its military."

JPMorgan Chase argued that the Pentagon designation applies primarily to War Department procurement and does not prohibit private-sector business relationships involving CATL. A JPMorgan spokesperson said, "Based on available information and our own due diligence, CATL has lawfully partnered with American companies—including major auto manufacturers—to provide essential battery technology that will strengthen U.S. manufacturing and enhance American competitiveness." Jamie Dimon, JPMorgan's chief executive, said in May 2025, "If we thought it was wrong, we wouldn't do it. The government did not sanction CATL."

The committee's report argues that current U.S. law is insufficient to prevent American financial institutions from financing companies tied to China's military-industrial base because Section 1260H restrictions primarily affect War Department procurement rather than broader commercial activity. The committee recommends legislation prohibiting U.S. financial institutions from underwriting offerings for blacklisted Chinese entities and urges the Treasury Department to impose stronger sanctions authorities against CATL.