Jamie Dimon makes a wink during comments and reiterates his bank’s commitment to doing business in China.
Jamie Dimon, CEO of JPMorgan Chase and Co., jokes that his bank will last longer than China’s Communist Party.
While reiterating his bank’s commitment to business in China, Dimon said on Tuesday: “I was joking the other day that the Communist Party is celebrating its 100th year – so is JPMorgan. I will make a bet that we will last longer. ”
Dimon added: “I can not say that in China. They probably listen anyway. ” He spoke as part of a Boston College series of CEO interviews.
JPMorgan has been operating in China since 1921, the same year the Communist Party was founded there.
It has branches in many Chinese cities, including Beijing, Shanghai, Shenzhen and Guangzhou.
At the end of 2019, the bank received approval to establish a joint venture in the majority-owned securities offering brokerage, investment advisory and underwriting services.
In August, the bank obtained regulatory approval from Beijing to become the first full-fledged foreign owner of a securities brokerage in the country. Its other business interests in China include asset management and futures contracts.
Global executives usually choose their words carefully when discussing China, where foreign companies have sometimes suffered setbacks for alleged violations.
In 2019, comments about pigs in China by a senior economist at UBS, considered by some to be a racist insult, caused a stir and prompted one Chinese firm to suspend all business ties with the Swiss bank.
In Boston, Dimon also said he expects supply chain issues to be volatile, but that higher oil prices and wages will not disappear. He expects a percentage point or two of the recent 5 percent US inflation rate to fade as prices for items such as used cars and wood stop rising.
“There are other things that are probably not that transient,” Dimon said. “I do not think oil prices will fall.”
Dimon estimated there is about a third chance that inflation will be low enough to bring about moderate rises in market interest rates that will not push the economy into a recession.
There is an equal chance that inflation will pick up and push the US Federal Reserve to withdraw support for the economy, which may cause a slight recession, he said.
Dimon described the US economy as “booming”.
“Consumers and businesses are in good financial condition and there is even more monetary and fiscal stimulus coming,” he said.
Asked about cryptocurrencies, Dimon reiterated previous warnings to buyers.
“It’s not really a currency,” Dimon said, calling them “crypto tokens” with no intrinsic value rising in price on speculation fueled by government stimulus payments.
“It’s hysteria,” he said.