House Panel Faults U.S. Banks For Aiding Chinese Military-Linked Battery Firm
A House Select Committee on May 21 accused JPMorgan Chase, Bank of America and Morgan Stanley of helping Chinese battery maker CATL raise billions after the Pentagon designated it as linked to China's military-industrial complex.[1]
The report says JPMorgan and Bank of America underwrote CATL's Hong Kong initial public offering and that all three banks joined a subsequent offering.[1] Investigators said the banks did not break U.S. law but relied on CATL's assurances it lacked military ties and accepted what the committee called incomplete due-diligence responses.[1]
In January 2025 the Pentagon added CATL to the Section 1260H list of firms with suspected ties to China's military-industrial entities.[1] The committee highlighted public evidence of CATL links to Chinese military-industrial organizations and called for policy changes to prevent U.S. banks from raising capital for companies on that list.[1]
Show source details & analysis (1 source)
📌 Key Facts
- On May 21, 2026, a House Select Committee report accused JPMorgan, Bank of America and Morgan Stanley of helping CATL raise billions after a Pentagon military-company designation.
- The report says JPMorgan and Bank of America underwrote CATL's Hong Kong IPO and that all three banks later joined a second offering, all after CATL was added to the Section 1260H list in January 2025.
- Investigators state the banks broke no U.S. law but chose to rely on CATL's assurances it lacked military ties, despite the Pentagon's designation and what the committee calls incomplete due‑diligence responses.
- The committee highlights public evidence of CATL links to Chinese military‑industrial entities and calls for policy changes to prevent U.S. banks from raising capital for designated Chinese military companies.
📰 Source Timeline (1)
Follow how coverage of this story developed over time