During the congressional hearing on Wednesday, U.S. bank’ CEOs said they would follow what the government demands of them in the event of a Taiwan invasion by Chinese forces.
Executives of Bank of America, Citigroup, JPMorgan Chase, and regional banks attended a hearing at the U.S. House Committee on Financial Services. They answered questions relating to a possible military attack from China on Taiwan.
They were asked by Blaine Luetkemeyer, a congressman from Missouri, whether they would withdraw their business from China if the communist regime attacked Taiwan.
Brian Moynihan, Bank of America’s chief executive, said, “We’ll follow the government’s guidance, which has been for decades to work with China. If they change their position, we will immediately change it, just as we did in Russia.”
Jamie Dimon, CEO of JPMorgan, answered the Committee, “we would absolutely salute and follow whatever the American government said, which is you all, what you want us to do.”
According to the Financial Times, U.S. banks pulled their business operations in Russia in response to the Russian invasion of Ukraine. However, China’s economy is much bigger than Russia’s, and multiple banks still seek ways to expand their business in China.
The Financial Times reported that Citigroup had $27.3 billion worth of exposure to China at the end of 2021, including securities business, five times more than it had in Russia. JPMorgan had a securities joint venture with a Chinese partner in 2011 and took complete control of it last year.
Admiral Philip Davidson, then the head of U.S. Indo-Pacific Command, informed Congress in March 2021 that he thought China might invade Taiwan by 2027, raising significant concerns.
Last week during an interview on CBS’s 60 Minutes, President Biden repeated that U.S. forces would protect Taiwan if the Chinese communist regime launched a military assault on the island.
The Chinese regime claims a self-governing Taiwan as its territory and considers it a breakaway province. It has threatened multiple times to reunify the island by force if necessary.