In a CEO letter to shareholders, J.P. Morgan’s Jamie Dimon called for toughness against China, claiming that there is «no alternative to American leadership».
As part of the 2023 annual report, J.P. Morgan CEO Jamie Dimon mentioned China 18 times in a letter to shareholders. This was primarily in the context of geopolitics and competition between the US and China, which he called the «only other potential superpower».
The bank dedicated a full section to politics entitled «A Pivotal Moment for America and the Free Western World: Strategy and Policy Matter» and noted four pillars to ensure that «the world stays safe […] for freedom and democracy». They include the need to: maintain American leadership; achieve long-term economic success with allies; strengthen the US domestically; and deepen focus and resolve on addressing pressing challenges.
China: «Potential Threat»
According to Dimon, Western governments and businesses have «essentially underestimated the growing strength and potential threat of China». The threats come from three vantage points: supply chain overreliance on China, reliance on materials that are key to national security like rare earths, 5G and semiconductors; and countering unfair competition.
«It’s also true that China has been comprehensively and strategically focused on these economic issues, all while we slept,» Dimon added. «But let’s not cry over spilled milk — let’s just fix it.»
Be Tough But Also Engage
Despite the call for toughness against China, Dimon also noted the need to engage with the country.
«While we may always have a complex relationship with China (made all the more complicated and serious by ongoing wars), the country’s vast size and importance to so many other nations requires us to stay engaged — thoughtfully and without fear,» he said.
New Bretton Woods
To resolve such challenges, Dimon suggested the idea of re-establishing a Western international rules-based order that covers military alliances, trade agreements, development finance, global taxes, investment policies and diplomacy organizations in addition to new issues like cyber warfare, digital trade and privacy.
«It might be a good idea to convene a group of like-minded leaders to build and improve upon what already exists. The time may be right for a reimagined Bretton Woods – and by this, I mean revitalizing our global architecture,» he explained. «Since too many parts of the world have been neglected, any new system has to take into account and properly address the needs of all nations, including areas of concentrated poverty.»
No Alternative
Throughout the letter, Dimon repeatedly promoted the US as the key to maintaining global freedom and democracy, adding that there is «no alternative to American leadership».
«Beyond our country’s borders, people and nations around the world understand the role that America has played in promoting world peace — known as Pax Americana,» he said. «For the most part, Pax Americana has kept the world relatively peaceful since World War II and helped lead to enormous global economic prosperity, which has helped lift 1.3 billion people out of poverty.»
New Role
To respond to the important key policy issues in the region, the bank created a new role called head of Asia Pacific policy and strategic competitiveness. Ex-Teneo APAC chairman Paul Haenle has been in the role since December 2023, according to his LinkedIn profile, and he is tasked with focusing on issues such as trade restrictions, supply chains and infrastructure.
A new strategic security forum has also been formed to focus on «emerging and evolving risks, including trade wars, pandemics, cybersecurity and actual wars».
Succession Plan
Separately, J.P. Morgan’s board has identified potential successors to Dimon, according to a proxy statement, who signaled last May that he could depart in three and a half years after more than 18 years in the CEO role.
Top contenders include commercial and investment banking co-CEOs Jennifer Piepszak and Troy Rohrbaugh, consumer and community banking CEO Marianne Lake, as well as asset and wealth management CEO Mary Erdoes. President and chief operating officer Daniel Pinto was also named as a key executive who is immediately ready to fulfill the CEO responsibilities «should the need arise in the near term».
