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Jamie Dimon, CEO of JPMorgan Chase, said on Wednesday that Wall Street bank regretted the remarks that it would last longer than the Communist Party of China, moving quickly to avoid any long-term collapse.
Dimon’s comments jeopardized JPMorgan’s growth intentions in China, where in August it gained regulatory approval to become the country’s first foreign owner of a securities brokerage. Chinese experts in the United States said his quick apology should ensure he did no serious harm.
“I’m sorry and I didn’t have to make that comment. I was trying to emphasize the strength and longevity of our company,” Dimon said in a note issued by the bank.
In a later statement, Dimon said: “It is never right to make fun of or disparage any group of people, be it a country, its leadership, or any part of a society and culture. Talking like that can take away from constructive and reflective dialogue in society, now more necessary than ever. ‘
Dimon spoke in a series of interviews with Boston College CEOs on Tuesday: “The other day I made a joke that the Communist Party was celebrating its 100th anniversary, including JPMorgan. I would bet we would last longer.”
“I can’t say that in China. They’re probably listening anyway, “he added.
Beijing’s acceptance of JPMorgan taking full ownership of the securities business was a milestone in the opening of China’s capital markets, following Washington’s gradual movement and pressure.
Beijing sees the involvement of foreign banks as important for China’s domestic financial development, academics say. However, they added that Western companies that do business in China still need to be careful.
“Dimon’s apology shows the level of respect that foreign businesses must show to the Chinese government to continue at its best and maintain access to the country’s markets,” said Eswar Prasad, a professor at Cornell University.
“I don’t think this will have any longer-term consequences,” said Leland Miller, CEO of China Beige Book data company and an expert on China’s financial system.
Dimon’s comments sparked a reaction from Chinese commentators.
The editor of the Global Times nationalist tabloid and the most significant Chinese journalist, Hu Xijin, said on Twitter: “Think long term! And I bet the CPC will last longer than the US. ”
When Bloomberg asked about Dimon’s comments at a news conference on Wednesday, Chinese Foreign Ministry spokesman Zhao Lijian replied, “Why this appearance of publicity with some big notes?” according to an English transcript of the notes.
Global executives usually choose their words carefully when talking about China, where foreign companies have occasionally suffered reactions for perceived crimes.
Swiss bank UBS was in trouble in 2019 after one of its top economists interpreted a note about food inflation and pig farming as racist. It was suspended for three months and UBS lost its role in a state-sponsored customer bond deal.
Earlier this year, Swedish fashion giant H&M and US-based Nike Inc China underwent a backlash from Chinese state media and e-commerce platforms after expressed concern over allegations of using forced labor to produce cotton in Xinjiang.
“The Chinese government has shown enough to limit its will or, in some cases, to close the operations of foreign companies in the country, if they openly challenge the government or even perceive or even make indirect comments,” Prasad said.
A week ago, Dimon granted an exemption for the Hong Kong government to visit a financial center controlled by China, without having to put it in quarantine.
Visitors to the city from most countries have to stay in the hotel quarantine for two to three weeks on their own.
Dimon was in Hong Kong for 32 hours after arriving by private jet.
“The best and worst feature of Jamie Dimon is that he speaks for his opinion,” said Fargo analyst Mike Mayo Wells.
“It usually works well and is more real and appreciated by investors. But sometimes it gets in the way of problems.”
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