An investigation carried out by the House of Representatives Select Committee on China has revealed that American banks may have been involved in helping Chinese interests tied to the Chinese Communist Party and the Chinese People's Liberation Army raise billions of dollars. It is belaboring the obvious that having China raise money on this scale isn't in the best interests of the United States.
The Committee broke the news first on X.
🚨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… pic.twitter.com/6mujAwnfL4
— Select Committee on China (@ChinaSelect) May 21, 2026
The post is a lengthy one, but here is a key point:
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.
And:
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.
In simple English, American financial institutions are implicated in a financial scheme that may well have raised money for the Chinese military - and for Chinese operations that use forced labor in their operations.
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The Committee also issued a press release, which you can see here.
“My committee’s investigation calls for serious policy changes to ensure what JPMorgan and Bank of America did never happens again. American banks must not help Chinese military companies raise money, because in doing so, they provide not only access to funding, but also legitimacy and credibility to companies that are helping our adversary build up its military,” said Select Committee Chairman John Moolenaar.
Moolenaar previously issued subpoenas to the banks in July 2025 and the Select Committee reviewed due diligence materials, risk assessments, third-party reports, and internal approvals. Those records call into question CATL’s representations about its military ties and forced labor record. The Select Committee’s investigation details additional links between CATL and China’s military.
In a separate deal covered in the investigation, Morgan Stanley sponsored the IPO of Zijin Gold International Co., Ltd. (Zijin Gold), whose parent company and certain subsidiaries are on the Uyghur Forced Labor Prevention Act (UFLPA) Entity List. The same pattern appeared in the Morgan Stanley deal with Zijin Gold. According to the report, Morgan Stanley proceeded to sponsor the IPO despite clear knowledge that Zijin Mining and its Xinjiang subsidiaries had been placed on the Uyghur Forced Labor Prevention Act (UFLPA) Entity List.
The full investigation report is available here, and a related video announcement is here.
That's a lot to absorb. The Committee's report, according to the chair, Republican Representative John Moolenaar (MI-02), has made several policy recommendations, although it's unclear as yet what action may be taken against the financial institutions named.
Do we have to note that, if all the allegations in this report are true, these institutions have engaged in a serious betrayal of the best interests of the United States? Whatever the legal consequences may be, it seems likely, indeed, desirable, that if these allegations are proven true, these institutions should lose a lot of business.
Stay tuned. We're sure to hear more about this.
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