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JPMorgan Chase Chief Executive Officer Jamie Dimon said on Wednesday he regretted his statement that the Wall Street bank would be longer than the Chinese Communist Party, moving faster to prevent a long-term collapse.
Dimon’s comments jeopardized JPMorgan’s growing ambitions in China where he received approval in August to become the country’s first foreign security firm. Chinese experts in the United States say his immediate apology should ensure that no major incident has occurred.
“I have a lot of regrets and I shouldn’t have said that. I wanted to emphasize the strength and longevity of our company, “Dimon said in a statement issued by the bank.
In his subsequent statement, Dimon stated: “It is never proper to make jokes or demean any group of people, whether national, social, or cultural. Speaking in such a manner can cut down on the dynamic dialogue within the community, which is now more important than ever. ”
Speaking at a press conference at Boston College on Tuesday, Dimon said: “I joked the other day that the Communist Party was celebrating its 100th anniversary – so did JPMorgan. I bet we will be living longer.”
“I can’t say that in China. Maybe they are still listening,” he added.
Beijing’s acceptance of JPMorgan’s full ownership of its security business was a significant step forward in opening up major Chinese markets after years of slow travel and pressure from Washington.
Beijing sees the participation of foreign banks as essential to China’s economic growth, academics say. However, he adds, Western companies doing business in China still need to tread carefully.
“Dimon’s apology shows the amount of foreign business that he has to show to the Chinese government in order to remain in its favor and to be able to access the country’s markets,” said Eswar Prasad, a professor at Cornell University.
“I do not think this will have long-term consequences,” said Leland Miller, chief executive of China Beige Book data company and economist in China.
Dimon’s comments attracted interest from Chinese commentators.
The editor of the Global Times and China’s most widely spoken journalist, Hu Xijin, said on Twitter: “Think long and hard! And I doubt the CPC will continue in the USA.”
Asked by Bloomberg about Dimon’s comments at a press conference on Wednesday, Chinese Foreign Ministry spokesman Zhao Lijian responded: “Why do people complain about big voices?” according to the English grammar of the word.
Supervisors around the world often choose their words carefully when discussing China, while foreign companies are sometimes criticized for their wrongdoing.
Swiss Bank UBS got into trouble in 2019, after talking to one of the economists about rising food prices and swine fever was interpreted as racism. He was suspended for three months and UBS lost its financial share to a government-sponsored client.
Earlier this year, Swedish fashion giant H&M and Nike Inc in the US faced a challenge from China’s social media and e-commerce platforms after expressing concerns about alleged coercion in cotton production in Xinjiang.
“The Chinese government has shown its willingness to ban or sometimes shut down foreign businesses in the country if they openly oppose the government or do certain things they think or do,” Prasad said.
Last week Dimon was allowed by the Hong Kong government to visit China-controlled economic zones without isolation.
Visitors to the city from many countries should stay in a hotel for two to three weeks at their own cost.
Dimon was in Hong Kong for 32 hours after arriving on a private plane.
“Jamie Dimon’s best and worst behavior is that he speaks his mind,” said Wells Fargo expert Mike Mayo.
“It works well for him and makes him honest and appreciated by the investors. But sometimes it gets him in trouble.”
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