US Lawmaker Aims To Keep Business Owned By Some Countries Off Military Bases

A North Carolina congressman has introduced legislation to ban Chinese-owned businesses like GNC from operating on US military bases, citing serious national security concerns about data collection and foreign influence.

Key Takeaways

Rep. Pat Harrigan has introduced the Military Installation Retail Security Act to ban retailers owned or controlled by China, Russia, Iran, or North Korea from operating on US military bases.
GNC, owned by China’s state-run Harbin Pharmaceutical Group, currently operates over 80 stores on American military installations.
The legislation would terminate existing contracts with foreign-owned retailers that have misrepresented their ownership status.
The proposal requires national security reviews for on-base retailers with foreign ties and ensures greater transparency in future agreements.
Concerns include potential collection of personal data, spending habits, and behavioral patterns of US military personnel.

Foreign Retail Presence on Military Bases Raises Alarms

US Representative Pat Harrigan is taking aim at what he describes as a significant national security vulnerability – foreign-owned retailers operating on American military bases. The North Carolina congressman has introduced House Resolution 2551, formally known as the Military Installation Retail Security Act, which would prohibit retailers owned or controlled by adversarial nations from maintaining a physical presence on US military installations. The legislation specifically targets businesses with ties to China, Russia, Iran, and North Korea, requiring the termination of existing contracts and mandating national security reviews for companies with foreign connections.

Central to Harrigan’s concerns is GNC, the national supplement retailer that was acquired by China’s state-run Harbin Pharmaceutical Group after filing for bankruptcy in 2020. According to Harrigan, GNC now operates more than 80 stores on American military bases despite being wholly owned by a company controlled by the Chinese Communist Party. The congressman argues these outlets could potentially collect sensitive information about US military personnel with minimal oversight, creating a direct pipeline of valuable data to a foreign adversary.

American military base retailers would exclude 4 hostile nations under proposal https://t.co/KxMeeZ5Jbd

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National Security Implications and Legislative Response

Harrigan, a former Army special operator, has emphasized the serious national security implications of allowing foreign-controlled retailers to operate freely on military installations. The legislation he has introduced would not only ban such operations going forward but would also terminate existing agreements with companies that have misrepresented their ownership status. The bill would further establish mandatory national security reviews for any on-base retail establishments with foreign ties and implement stronger transparency requirements for future retail agreements on military bases.

The legislation comes amid broader concerns from US lawmakers about foreign adversaries gaining access to critical infrastructure near military installations. Harrigan has specifically called for a Department of Defense investigation into the Chinese retail presence on bases, urging his colleagues to support the bill as an essential step to protect national security. The congressman’s proposal aims to close what he describes as a dangerous loophole that has allowed foreign-owned businesses to operate with limited scrutiny in sensitive military environments.

GNC’s Response and Ongoing Concerns

GNC has pushed back against the characterization that it poses a security threat. CEO Michael Costello defended the company’s operations, stating that Chinese ownership has no access to personal data and that GNC complies with all US government regulations. According to Costello, GNC provides quarterly audits to the Committee on Foreign Investment in the United States (CFIUS) and has been operating on military installations since 2002, long before its acquisition by Harbin Pharmaceutical Group.

However, the congressman has argued that when GNC Holdings registered on SAM.gov in 2022, it did not disclose its foreign ownership. Senator Marco Rubio had previously expressed concerns about GNC’s sale to Harbin, warning about the risk of exposing Americans’ personal data to the Chinese government. Nevertheless, a Bankruptcy Court approved the sale for $770 million in 2020, allowing the previously family-owned business from Pittsburgh to come under Chinese control while maintaining its extensive presence on American military installations.