Letter to Brian Moynihan (CEO Bank of America)
April 17, 2025
Mr. Brian Moynihan
Chairman and Chief Executive Officer
Bank of America
100 North Tryon Street
Charlotte, NC 28255
Dear Mr. Moynihan,
We are writing to express significant concerns regarding Bank of America’s involvement in the upcoming Hong Kong initial public offering (IPO) of Contemporary Amperex Technology Co., Limited (CATL)—a Chinese military company designated by the U.S. Department of Defense under Section 1260H of the National Defense Authorization Act (NDAA).
If Bank of America proceeds with underwriting CATL’s IPO, it risks supporting a company with ties to:
The ongoing genocide of Uyghur Muslims in Xinjiang,
The erosion of American manufacturing, and
The endangerment of U.S. service members.
Over the past two decades, Chinese submarines have repeatedly stalked U.S. warships, sometimes undetected and within striking distance. In one instance, a Chinese submarine surfaced within torpedo range of a U.S. aircraft carrier. Admiral Sam Paparo, Commander of the U.S. Indo-Pacific Fleet, has warned that China’s advanced submarines “were built to threaten the United States.”
Former Senator and current Secretary of State Marco Rubio, along with 26 bipartisan Members of Congress, has cautioned that CATL’s lithium-ion batteries may soon power China’s conventional submarine fleet—replacing outdated lead-acid batteries and strengthening China's naval threat.
CATL’s inclusion on the Department of Defense’s 1260H List indicates its ties to the People’s Liberation Army (PLA) and China’s broader civil-military fusion agenda. As a global leader in battery production—a sector targeted by Beijing’s fusion policy—CATL presents major risks to U.S. investors and national security.
Further compounding this, CATL maintains a close tier-one supplier relationship with the Xinjiang Production and Construction Corps (XPCC)—a sanctioned paramilitary entity involved in operating forced labor camps in Xinjiang. XPCC was central to the Uyghur Forced Labor Prevention Act (UFLPA) and has been linked to grave human rights abuses, including mass detention and physical abuse of Uyghurs and other ethnic minorities.
We are including, as an appendix, our 2024 letter—co-signed by House Homeland Security Committee Chairman Mark Green and Secretary Rubio—detailing multiple connections between CATL and sanctioned Chinese entities directly involved in atrocities in Xinjiang.
Despite these serious concerns, reports suggest that Bank of America and other American banks aggressively pursued CATL’s IPO. Executives reportedly deprioritized other deals to focus on securing CATL’s listing, and the notably low fee structure raises further questions about whether Bank of America compromised due diligence and compliance in pursuit of this transaction.
President Trump’s America First Investment Policy (National Security Presidential Memorandum No. 33) explicitly prohibits funneling U.S. investments into companies aiding the Chinese Communist Party’s military-industrial complex or human rights abuses. CATL’s IPO is the exact kind of investment this policy was designed to block. The NSPM states:
“The United States will establish new rules to stop United States companies and investors from investing in industries that advance the PRC’s national Military-Civil Fusion strategy.”
By underwriting this IPO, Bank of America is exposing itself—and American investors—to significant regulatory, legal, and reputational risks.
Request for Information
If Bank of America does not intend to immediately withdraw from the CATL IPO, we request a full and detailed response to the following questions no later than April XX, 2025:
How does Bank of America justify financing a company formally designated as a “Chinese military company” by the Department of Defense?
Please provide all documents and communications from CATL addressing its designation and ties to sanctioned entities—both pre- and post-engagement.
Submit all internal memos, emails, or meeting notes from risk and compliance teams regarding this deal.
Provide all communications with CATL about its relationship with XPCC and potential U.S. sanctions implications under UFLPA.
Share all internal risk assessments or due diligence materials related to CATL’s military ties and sanctions risks.
Does Bank of America acknowledge that CATL’s 1260H designation links it to China’s Military-Industrial Complex?
Does Bank of America recognize that CATL’s battery technology may be used in PLA submarines targeting U.S. forces?
How does this transaction align with your Human Rights Statement, which affirms Bank of America’s commitment to the U.N. Universal Declaration of Human Rights?
Has Bank of America assessed potential legal and reputational risks associated with the IPO? What mitigation steps have been taken?
Did Bank of America consult with U.S. agencies (e.g., Treasury, Commerce, DoD) before proceeding?
Does Bank of America accept any responsibility for potentially aiding China’s overcapacity-driven battery exports that harm U.S. manufacturers?
Was Bank of America aware of CATL’s military designation before engagement? What compliance steps were taken?
What disclosures were made—or will be made—to investors regarding CATL’s designation?
What valuation models and pricing assumptions were used? Were geopolitical risks factored into IPO pricing?
Were U.S. investors excluded from this offering in light of CATL’s military designation?
Has Bank of America structured indemnities or warranties to shield itself from legal or national security liabilities?
Who are the external legal, accounting, auditing, or national security advisors involved? Were any concerns raised, and will they be disclosed?
Has Bank of America received any direct or indirect communication from Chinese government or CCP officials about the IPO?
Has Bank of America evaluated whether its involvement may trigger obligations under the Foreign Agents Registration Act (FARA)?
Has Bank of America conducted internal audits or reviews regarding the unusually low IPO fee structure? Were fees reduced to gain CCP favor?
Were changes made to the IPO prospectus to reflect CATL’s military ties or regulatory risks? If so, will you provide all versions and identify edits?
To submit your response or ask follow-up questions, please contact Select Committee majority staff at (202) XXX-XXXX.
The House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party has full authority under H. Res. 5 Sec. 4(a) to investigate and recommend policies addressing threats posed by the CCP to U.S. national, economic, and technological security.
We thank you for your attention to this important matter and appreciate your full and timely reply.
Sincerely,
John Moolenaar
Chairman
House Select Committee on the CCP
You can find the full letter HERE