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Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi of the United States House Select Committee on Chinese Communist Party (CCP) has called on the Federal Communications Commission (FCC) to investigate a recent transaction involving Zhejiang Dahua Technology, a Chinese surveillance equipment manufacturer, to determine whether it is an attempt to circumvent US national security restrictions.
In a letter to FCC Chairwoman Jessica Rosenworcel on November 20, the lawmakers expressed concerns that Dahua's recent sale of its US subsidiary Dahua Technology US, to Luminys Systems, a company reportedly affiliated with the Taiwanese firm Foxlink might be a deliberate move to bypass existing US regulations. These regulations prohibit the sale of Dahua products, particularly video surveillance equipment, for national security purposes due to the company's ties to the CCP and its involvement in alleged human rights abuses in Xinjiang. The lawmakers highlighted that while Luminys' press release touted the transaction as a strategic step toward expanding its distribution in the US market, publicly available information suggests Dahua's firmware and software will still be developed and controlled in China. This raises the possibility that the transaction is designed to sidestep legal restrictions such as the National Defense Authorization Act (NDAA) Section 889, which bans the US government from procuring products from Chinese companies like Dahua. The letter further notes that analysts have raised concerns that this move could allow Dahua to claim it no longer manufactures these products, potentially evading the FCC's new device authorization requirements and NDAA-related bans. The lawmakers urged the FCC to closely scrutinise the transaction and brief relevant congressional committees to ensure that national security protections remain intact and that foreign companies are not exploiting loopholes to continue selling surveillance technology with ties to the Chinese government. This request follows ongoing efforts by US agencies, including the FCC, the Department of Defense, and the Department of Commerce, to combat the national security risks posed by Chinese-made communications and surveillance equipment. The lawmakers emphasised the need for vigilance to prevent foreign entities from exploiting regulatory gaps, ensuring that the US remains protected against potential security threats. (ANI)
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