JPMorgan Chase CEO Jamie Dimon on Wednesday said he regretted his remarks that the Wall Street bank would outlast the Communist Party of China (CPC), moving quickly to avoid any any long-term decline.
Dimon’s comments risked jeopardizing JPMorgan’s growth ambitions in China, where it won regulatory approval in August to become the first foreign owner of a company. stockbrokers in this country.
China experts in the US say his quick apology will ensure no serious damage is done.
“I regret it and should not have made that comment. I am trying to emphasize the strength and longevity of our company,” Dimon said in a statement released by the bank.
Dimon immediately realized that was a mistake, according to a source close to his thoughts. The source said that after seeing the reaction, he decided to express his regret.
In a later statement, Dimon said: “It is never right to joke or denigrate any group of people, whether it is a nation, its leadership or any section of society, and Speaking in that way can detract from the constructive and thought-provoking dialogue in society, which is needed now more than ever.”
Referring to the matter in a comment posted on Twitter on Thursday, the outspoken editor of the Global Times, Hu Xijin, said: “Actually you don’t need to regret it.
“CPC has been far more successful in its field than JP Morgan. As a member of CPC, I don’t mind your company driving the CPC popularity wave.”
A day earlier, Hu said: “Think long-term! And I bet the CPC will outlast the US.”
Speaking at a series of interviews with Boston College CEOs on Tuesday, Dimon said: “The other day, I joked that the Communist Party was celebrating its 100th anniversary – so was JPMorgan. I bet we’ll last longer.”
“I can’t say that in China. They might be listening anyway,” he added.
Beijing’s approval to give JPMorgan full ownership of its securities business is an important milestone in opening up China’s capital markets after years of gradual change and pressure from Washington.
According to the researchers, Beijing considers the participation of foreign banks to be important to China’s domestic financial development. However, they added, Western companies doing business in China still need to be cautious.
Eswar Prasad, a professor at Cornell University, said: “Dimon’s apology shows just how disrespectful foreign businesses are to the Chinese government to maintain respect and maintain accessibility. market access of the country”.
“I don’t think this will have any long-term consequences,” said Leland Miller, chief executive officer of data firm China Beige Book and an expert on China’s financial system.
When asked by Bloomberg about Dimon’s comments at a press conference on Wednesday, Chinese Foreign Ministry spokesman Zhao Lijian replied: “Why publicity stunt with some great remarks?”, Theo an English transcript of the comment.
BACKLASH
Global executives often choose their words carefully when discussing China, where foreign companies have sometimes faced backlash for violations of the law.
Swiss bank UBS struggled in 2019, after a comment by one of its senior economists about food inflation and swine fever was interpreted as a racist slur. ethnicity. He was suspended for three months and UBS lost a significant role in a bond deal for a state-backed client.
Earlier this year, Swedish fashion giants H&M and US-based Nike Inc faced backlash from Chinese e-commerce platforms and state media after expressing concerned about the alleged use of forced labor to produce cotton in Xinjiang.
“The Chinese government has made it very clear that it is willing to limit or in some cases shut down the operations of foreign businesses in the country if it defies the government in any way,” said Cornell’s Prasad. overt or even petty or indirect actions.
A week ago, Dimon was granted permission by the Hong Kong government to visit the Chinese-controlled financial center without the need for quarantine.
Visitors to the city from most countries must stay in a hotel quarantine for two to three weeks at their own expense.
Dimon was in Hong Kong for 32 hours after arriving by private jet.
“The best and worst trait of Jamie Dimon is that he speaks his mind,” said Wells Fargo analyst Mike Mayo.
“It usually works well for him and makes him more authentic and appreciated by investors. But sometimes it gets him into trouble.”
(This story has not been edited by NDTV staff and was automatically generated from the feed provided.)
