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Momentum is building this week for the removal of Chinese-owned GNC from U.S. military installations, as Senator Ted Budd from North Carolina introduced companion legislation in the Senate to a House-led bill targeting the controversial nutrition retailer.
Currently, approximately 85 GNC stores operate on American military bases. Representative Pat Harrigan, also from North Carolina, was the first to introduce legislation aimed at banning the company from conducting business on these bases, citing serious national security and espionage concerns.
Senator Budd, joined by Senators Tom Cotton of Arkansas and Rick Scott of Florida, is leading a significant initiative in the Senate known as the Military Installation Retail Security Act. This bill would prevent the Department of Defense from allowing businesses owned by countries considered adversaries, which include China, Russia, Iran, and North Korea, to operate on U.S. military bases.
At Fort Bragg in North Carolina, four GNC stores cater to around 53,700 troops, which amounts to nearly 10 percent of the U.S. Army. Concerns have arisen as adversarial nations are perceived to exploit personal data collected from military personnel.
Senator Budd voiced his concerns, stating, “Adversarial nations should not be involved in owning and operating businesses on U.S. military bases. They gain access to personal identification information of American citizens for profit.”
Senator Cotton echoed this sentiment, insisting that allowing companies with Chinese affiliations or ties within the U.S. is unacceptable, especially on military installations. “This bill will close any loopholes that could enable our adversaries to exploit our military,” he asserted.
While Congress has actively sought to prevent foreign land purchases near military installations, Harrigan expressed alarm over the existence of Chinese-owned businesses operating largely unnoticed on U.S. bases.
Harrigan remarked, “It’s even crazier than foreign land purchases.” His statement underscores the unexpected yet significant presence of foreign enterprises in sensitive locations.
The history of GNC is notable. In June 2020, the vitamin retailer filed for bankruptcy and was subsequently acquired by Harbin Pharmaceuticals, a partially state-owned Chinese firm that had already purchased a 40 percent stake in the company in 2018.
In 2019, GNC agreed to merge its manufacturing operations with International Vitamin Corporation (IVC), a company backed by a consortium of Chinese investors. At the time of its acquisition, GNC had already gained a foothold on U.S. military bases, raising concerns regarding its potential role in facilitating Chinese surveillance.
The roughly 85 GNC stores on military bases operate under long-term contracts directly overseen by GNC, raising alarms about their implications for national security.
Senator Harrigan expressed his approval of Senator Budd’s efforts, saying, “I’m grateful to Sen. Budd for taking on this issue to ensure that companies owned by the Chinese Communist Party cannot influence America’s military infrastructure.”
In response to the legislation, a spokesperson for GNC asserted that their systems undergo independent monitoring and comply with strict federal standards, undergoing multiple audits annually. “We care deeply for our military customers. Their safety and well-being, including the security of their information, remains our top priority. We cherish being part of their communities and will continue to protect their information as we do with all our customers,” the spokesperson stated.
Harrigan raised additional concerns, noting that the stores could track purchases of sensitive items, such as testosterone and sleep aids, potentially leading to the identification of vulnerable individuals. This ability could extend to deducing deployment cycles by analyzing changes in buying patterns.
Furthermore, Harrigan claimed that in-store Wi-Fi and mobile data tracking could reveal troop locations. Loyalty programs and promotional emails could be misused to distribute malicious links or software, posing further risks to military personnel.
In light of these developments, Senator Scott asserted, “This should be common sense. Allowing companies controlled by our prominent foreign adversaries – such as Communist China, Russia, and North Korea – to operate on U.S. military bases represents an inexcusable threat.”
The stakes are high as lawmakers strive to safeguard national security. The growing bipartisan initiative to ban Chinese-owned GNC from U.S. military bases sheds light on the critical need to evaluate foreign business involvement in sensitive military locations.
As the legislative measures continue to unfold, the implications for military operations and national security remain paramount. Observers are keen to see how this issue evolves and the potential impact on military personnel and their operations. With lawmakers collectively voicing concerns about foreign ownership and control over American institutions, the future of businesses like GNC on military installations hangs in the balance.