Daimon Apologizes Within a Day for Joke Targeting Chinese Communist Party

Jamie Dimon, CEO of JP Morgan (Photo by Bloomberg News)

[Asia Economy Reporter Yujin Cho] Jamie Dimon, CEO of JP Morgan Chase, the largest bank in the United States, made a joke about the Chinese Communist Party and had to backtrack within a day.

On the 24th (local time), according to the Wall Street Journal (WSJ) and others, Dimon attended a panel discussion at the Boston College CEO Club held in Boston the previous day and mentioned, "The founding of the Chinese Communist Party and JP Morgan's entry into China both mark their 100th anniversary," then said, "I would bet that we will last longer than the Chinese Communist Party."

He continued, "If I were in China right now, I wouldn't be able to say this, but Communist Party officials are somehow listening to me in Boston," implying that Chinese spies are active in the United States.

After the remarks were first reported by Bloomberg News and caused a stir, the company's government relations team and staff at the China branch held an emergency meeting to manage the situation. Eventually, CEO Dimon issued an apology statement 18 hours later. In the statement, Dimon said, "I should not have made such remarks," explaining, "I was trying to emphasize our company's strength and longevity."

The Chinese side reacted angrily. On the 24th, Zhao Lijian, spokesperson for the Chinese Ministry of Foreign Affairs, was asked about Dimon's remarks by a Bloomberg reporter during a regular briefing and said, "Is it necessary to mention something said by someone just trying to attract attention?"

Some foreign media reported that this remark could trigger a backlash that might revoke JP Morgan's permission to hold equity in asset management companies in China. JP Morgan was the first Wall Street bank to receive approval to hold 100% equity in an asset management subsidiary in China.

On Weibo, Sean Yi, a lecturer at Fudan University in Shanghai, posted, "CEO Dimon is very arrogant," and "It seems he does not want the license JP Morgan obtained."

China has a history of retaliating against individuals or companies that make remarks targeting the legitimacy of the Communist Party or politically sensitive issues such as Taiwan. In the past, Paul Donovan, chief economist at Swiss investment bank UBS, made a derogatory remark calling China "Chinese pigs," and was warned that all business with Chinese companies and UBS would be stopped.

This is not the first time Dimon's remarks have caused controversy. In 2018, at a charity event, Dimon declared that he was stronger and smarter than Trump and could beat him if he ran for president, but issued an apology statement a few hours later.