Select Committee on China@ChinaSelect
🚨BREAKING | A new @ChinaSelect investigative report is out today and the findings are troubling. Our investigation and subsequent report found that @jpmorgan, @BankofAmerica, and @MorganStanley helped Chinese companies tied to the CCP’s military apparatus and forced Uyghur labor raise BILLIONS in global capital markets.
Just months after @DeptofWar designated Contemporary Amperex Technology Co., Ltd. (@catl_official), the world’s largest battery maker, as a “Chinese military company,” JPMorgan and Bank of America moved forward with underwriting its Hong Kong IPO, helping the company raise billions in new capital. According to our investigation, the banks proceeded even after CATL was linked to China’s Military-Civil Fusion strategy and despite evidence connecting the company to entities tied to the PLA, China’s defense-industrial base, and forced labor in Xinjiang.
The investigation uncovered CATL partnerships and business relationships with blacklisted Chinese defense-linked entities including @Huawei, NORINCO, CETC, @CSSC_global, COMAC, @ChinaMobile_X, and @CN_Nuclear_Corp. The report also details CATL’s ownership stake in Wuhu Shipyard, a key builder of Chinese naval vessels and military equipment, as well as research partnerships tied to the PLA’s National University of Defense Technology and China’s nuclear weapons complex.
The Committee found further evidence linking CATL’s supply chain to Xinjiang Production and Construction Corps (XPCC)-connected entities implicated in forced labor and the Uyghur genocide in Xinjiang. According to the investigation, CATL refused to provide full supply chain audits, while banks proceeded with the deals anyway despite public evidence and internal diligence reports identifying ongoing exposure to forced labor risks.
In a separate transaction, Morgan Stanley sponsored the IPO of Zijin Gold even after its parent company and Xinjiang subsidiaries were added to the Uyghur Forced Labor Prevention Act Entity List. Internal documents showed the firm identified significant sanctions and national security risks and moved forward regardless.
Our investigation concluded that Wall Street’s due diligence processes prioritized deal completion over national security and human rights concerns. Policy changes are needed to stop U.S. financial institutions from bankrolling companies tied to the CCP’s military buildup and forced labor system.
More on the report here: chinaselectcommittee.house.gov/media/press-re…
