A US House committee is putting pressure on JPMorgan Chase and Bank of America to pull out of a major deal with a Chinese electric vehicle battery company.
Concerns Over CATL’s Ties to Human Rights Abuses
The House Select Committee on the Chinese Communist Party is worried about the banks’ involvement in Contemporary Amperex Technology Co. Limited (CATL)’s Hong Kong IPO. Committee Chair John Moolenaar claims CATL is linked to the Chinese military and the persecution of the Uyghur people. He points to CATL’s close relationship with the Xinjiang Production and Construction Corps (XPCC), a Chinese state entity accused of running forced labor camps and committing human rights abuses against Uyghurs. The XPCC is specifically named in the Uyghur Forced Labor Prevention Act (UFLPA).
A $4.6 Billion Deal Under Scrutiny
Both JPMorgan Chase and Bank of America are underwriting CATL’s IPO, which raised approximately $4.6 billion. CATL shares are expected to begin trading on the Hong Kong Stock Exchange. The committee’s actions highlight growing concerns in the US about business dealings with Chinese companies implicated in human rights violations.
Disclaimer
This information is for general knowledge and does not constitute financial advice. Always conduct thorough research before making any investment decisions.
