House Committee Presses Banks on CATL IPO

The House Select Committee on the Chinese Communist Party, chaired by Rep. John Moolenaar, has urged Bank of America and JPMorgan Chase to withdraw from underwriting the Hong Kong IPO of Chinese battery maker CATL. The committee cites significant regulatory, financial, and reputational risks, including CATL's inclusion on a Pentagon blacklist for alleged ties to the Chinese military and reported links to forced labor in Xinjiang. The committee also referenced the Department of Defense's designation of CATL as a 'Chinese military company' and President Trump's America First Investment Policy, which discourages U.S. investment in such Chinese firms. CATL disputes allegations of military connections and its blacklist status. The committee has requested detailed risk and compliance information from the banks if they do not withdraw. This situation underscores increasing U.S. scrutiny of financial ties to Chinese firms amid national security and human rights concerns.