Moolenaar Demands Answers from Morgan Stanley on Chinese Mining Company Tied to Uyghur Forced Labor

Today, Chairman John Moolenaar (R-MI) of the Select Committee on China sent a letter to Morgan Stanley CEO Ted Pick demanding more information on the company’s underwriting of the initial public offering (IPO) of Zijin Gold International Company—a subsidiary of Zijin Mining Group, a company on the U.S. government's Uyghur Forced Labor Prevention Act (UFLPA) Entity List.

"When U.S. financial institutions engage with Chinese firms linked to Uyghur forced labor, they undermine the U.S. government’s goal of deterring forced labor globally. By facilitating these companies’ access to international capital markets, U.S. underwriters are enabling them to scale up their operations and engage in more forced labor, directly contravening the intent of U.S. law," Moolenaar writes in the letter.

"Reports indicate that Zijin Mining has a track record of human rights abuses. Even a cursory look at reports about Zijin Mining shows the horrific track record of human rights abuses the company perpetrates across the globe. From Xinjiang to Serbia to Colombia, groups have identified that Zijin Mining operates as a chronic human rights abuser," Moolenaar continues. "Morgan Stanley’s underwriting of Zijin Gold’s IPO showcases the very type of commercial activity the U.S. government seeks to prevent. By engaging in Zijin Gold’s IPO, Morgan Stanley places itself and its U.S. investors at serious risk of regulatory, financial, and reputational harm."

In July, Moolenaar subpoenaed documents from JPMorgan and Bank of America over their roles in underwriting the IPO of Chinese military company CATL.

Read the full letter to Morgan Stanley here.

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