In the midst of Washington and Beijing’s trade brinkmanship, CEO Jamie Dimon is launching the project.
Over the next ten years, JPMorgan Chase & Co. pledged to spend $1.5 trillion in sectors that support US economic stability and resilience. This program will include hiring bankers and other experts and investing billions of dollars in businesses.
The initiative will increase the amount of funds, resources, and staff that the biggest US lender currently invests in a range of industries, including robotics, rare earth minerals, pharmaceutical precursors, and defense, aerospace, and energy technologies like drones, battery storage, and grid resilience.
The endeavor, according to JPMorgan, would increase what it would have given by up to $500 billion.
In the midst of Washington and Beijing’s trade brinkmanship, CEO Jamie Dimon is launching the project. Following China’s announcement of tighter export limits on products that include even trace amounts of certain rare earth elements, as well as machinery and technology used to produce them, President Donald Trump pledged last week to levy a 100% tax on Chinese imports.
In a statement announcing the bank’s objective on Monday, Dimon said, “It has become painfully evident that the United States has allowed itself to become overly dependent on unreliable sources of crucial minerals, goods, and manufacturing – all of which are important for our national security.” “We must act immediately.”
Dimon, 69, has grown increasingly vocal regarding US security in recent years. In a May letter to shareholders, he cited China in particular, saying the US depends too much on possible enemies for vital defense supplies. US supply chains for essential goods and commodities “must be homegrown or only available to entirely supportive friends or partners,” he wrote in 2023.
Large investment banks may support sectors in a number of ways other than loans and direct investments without having to take out their own wallets. This may include managing the sale of stocks or bonds or setting up outside funding. The $1.5 trillion goal, according to JPMorgan, will include capital that the company enables. It said that its asset and wealth management division, which is in charge of managing client investments, would be involved in the project.
“This is not charitable giving. During a conference call on Monday to explain the news, Dimon said, “This is entirely commercial.” “We will use our research, banking, and investment capabilities to explore the United States and perhaps the globe for fresh possibilities.”
Last year, JPMorgan raised $2.8 trillion in capital and extended credit across the board.
Under the new program, the bank will spend up to $10 billion in equity and venture capital to support certain businesses’ growth, innovation, or strategic manufacturing. The company said that it would also support regulations that help in such endeavors.
Dimon said on Monday that JPMorgan would choose committed bankers and an investment team “who can deal not only with the top corporations in the world but governments.”