The House Select Committee on the Chinese Communist Party announced that an investigation into the Wall Street financing of Chinese-linked companies found JPMorgan Chase and Bank of America helped battery manufacturer Contemporary Amperex Technology Co. Limited (CATL) raise billions of dollars through a Hong Kong stock listing after the company had been designated by the Pentagon as a Chinese military entity.
In a statement, The committee said it reviewed due diligence materials, risk assessments, and internal approvals from both banks after issuing subpoenas in July 2025 when the institutions did not produce requested documents related to the listing.
According to the committee, the investigation raised questions about CATL’s representations regarding its ties to forced labor and the Chinese military. The report also said Morgan Stanley sponsored the initial public offering of Zijin Gold International, whose parent company is listed on the Uyghur Forced Labor Prevention Act Entity List.
CATL raised approximately $4.6 billion in its Hong Kong initial public offering in May 2025, with JPMorgan Chase and Bank of America serving as underwriters. The Department of Defense added CATL to its Chinese Military Company list in January 2025 under Section 1260H of the National Defense Authorization Act.
CATL holds a dominant position in the global electric vehicle battery supply chain. According to CnEVPost and the International Energy Agency, the company controls 45.2% of worldwide battery installations. China also produces about 80% of global batteries, more than 75% of lithium-ion battery production capacity, and 98% of global lithium iron phosphate cathode material.
The House Select Committee on the Chinese Communist Party is a bipartisan congressional committee focused on economic and security challenges involving China and developing policy recommendations related to U.S.-China strategic competition.
