US Markets
Wednesday, November 29th, 2023 4:06 pm EDT
Key Points
- Potential Exit from China: Jamie Dimon, CEO of JPMorgan Chase, stated that the bank would exit China if directed by the U.S. government. This assertion was made in the context of discussions about a potential conflict over Taiwan. Dimon emphasized that the bank’s departure from China would be a consequence if the U.S. government ordered it to do so.
- Concerns Over Taiwan Conflict: Dimon expressed concerns about growing geopolitical tensions, especially those fueled by conflicts in Ukraine and Israel, raising apprehensions that China might move to annex Taiwan. He acknowledged the severity of a potential war over Taiwan, stating that it would be detrimental not only for China but for the entire world.
- Complex Relations with China: The CEO highlighted the complexity of relations with China, describing it as a “very complicated subject.” He stressed the importance of engagement with both China and the U.S. government. Dimon expressed his belief that having an American bank in China is beneficial, as it can assist multinationals globally and contribute to China’s development. However, he noted that compliance with any U.S. government directives is paramount, even if it means discontinuing operations in China. Dimon also commented on China’s relations with neighboring countries, contrasting them with the positive relations the U.S. maintains with Mexico and Canada. He mentioned China’s challenges in maintaining good relations with its neighbors and noted concerns about the country’s demographics.
Jamie Dimon, CEO of JPMorgan Chase, stated at the DealBook Summit that the bank would exit China if the U.S. government mandated it. The statement came in the context of discussions about potential conflicts over Taiwan. Dimon highlighted that if there were a war in Taiwan, all bets would be off, and exiting China would be a consequence. JPMorgan has been active in China for a century, engaging in investment and corporate banking, payments, and asset management.
Dimon expressed concerns about growing geopolitical tensions, fueled by conflicts in Ukraine and Israel, raising the possibility of China moving to annex Taiwan. He acknowledged that while many do not think it will happen, the potential for war over Taiwan would be detrimental to the world and China. The CEO emphasized the complexity of relations with China and the necessity of engaging with both China and the U.S. government.
According to Dimon, having an American bank in China to assist multinationals globally and contribute to China’s development is positive. However, he noted that if the U.S. government were to prohibit such engagement, JPMorgan would comply. Dimon also commented on China’s relations with neighboring countries, contrasting the U.S.’s good relations with Mexico and Canada with China’s challenges in angering its neighbors and having “terrible demographics.”
JPMorgan advises Chinese clients, including Shein, a fast-fashion retailer, and ByteDance, the parent company of TikTok. Dimon addressed security concerns related to TikTok, stating that the bank conducts due diligence to ascertain the truth about these matters. He emphasized that if some individuals associated with these companies were found to be engaging in truly bad activities, the bank would not provide services to them.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/29/jamie-dimon-says-jpmorgan-chase-would-exit-china-if-ordered-to.html
