National security fears rise over Chinese-controlled company with access to American troops’ personal data.
A prominent North Carolina lawmaker is sounding the alarm on what he sees as a serious national security threat: a Chinese state-owned company operating retail stores on U.S. military installations.
Rep. Pat Harrigan (R-N.C.), a combat veteran and member of the House Armed Services Committee, has called for a full criminal investigation into GNC, the dietary supplement chain currently owned by China’s Harbin Pharmaceutical Group, a state-run enterprise. GNC operates over 85 stores on military bases across the country, including four at Fort Liberty, North Carolina.
“This is not just a red flag—it’s a five-alarm fire,” Harrigan declared. “A company controlled by the Chinese Communist Party, with a track record of fraud, cybersecurity lapses, and access to U.S. troops’ personal information, is operating freely within our military communities. That is unacceptable.”
The warning comes after a bombshell report from national security firm Exiger, which detailed how GNC imported more than 100 million pounds of ingredients from China—while marketing its products as “96% made in the USA.” The report also alleged that GNC utilized a Chinese manufacturer that falsified customs records to dodge tariffs, suffered a 2023 ransomware attack that jeopardized sensitive information, and continues to show major cybersecurity weaknesses.
Adding fuel to the fire is GNC’s legal ability to operate on military bases under contracts with the Army & Air Force Exchange Service, Navy Exchange Service Command, and Marine Corps Exchange. These contracts are notably exempt from the standard federal procurement rules and foreign ownership disclosures required of other government contractors. This regulatory gap has allowed foreign-controlled companies like GNC to maintain a presence on secure installations without routine national oversight.
Military retail stores are more than just shopping outlets—they collect and manage sensitive data from service members, veterans, retirees, and their families, including names, payment information, and purchase history. Harrigan argues this makes them prime targets for surveillance and data exploitation.
National security officials have long warned of Beijing’s use of legal and illegal methods to collect U.S. data and technology. A 2023 intelligence assessment flagged China’s interest in acquiring health and genomic data from Americans, and former FBI Director Christopher Wray previously cautioned about China’s widespread cyber and economic espionage efforts.
To close the loopholes, Harrigan introduced the Military Installation Retail Security Act, which would ban companies owned or controlled by adversarial nations—including China, Russia, Iran, and North Korea—from operating on U.S. military installations. The bill would also terminate contracts with companies that misrepresent their foreign ownership, require national security reviews of retailers with foreign ties, and mandate future transparency.
A Senate version of the bill was introduced earlier this year by Sen. Tom Cotton (R-Ark.), with co-sponsors Sens. Ted Budd (R-N.C.) and Rick Scott (R-Fla.). “We shouldn’t be allowing Chinese-affiliated companies in the United States, let alone on our military bases,” said Cotton. Scott added that the legislation would close “critical loopholes” and prevent America’s adversaries from “profiting off our service members and their families.”
GNC, founded in 1935 in Pittsburgh and acquired by Harbin Pharmaceutical following bankruptcy in 2020, has not yet issued a statement in response to the investigation or the proposed legislation.
