Raja Cites Security Concerns, Urges Probe Into China Firm

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WASHINGTON DC (ANI) – Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi of the U.S. House Select Committee on the Chinese Communist Party have called on the Federal Communications Commission (FCC) to investigate a recent transaction involving Zhejiang Dahua Technology, a Chinese surveillance equipment manufacturer, to assess whether it is an attempt to bypass U.S. national security restrictions.

In a letter to FCC Chairwoman Jessica Rosenworcel on November 20, Moolenaar and Krishnamoorthi raised concerns about Dahua’s sale of its U.S. subsidiary, Dahua Technology US, to Luminys Systems, a company reportedly linked to the Taiwanese firm Foxlink. The lawmakers suspect that this sale could be a strategic move to evade U.S. regulations that prohibit the sale of Dahua products, including video surveillance equipment, due to the company’s ties to the Chinese Communist Party (CCP) and its alleged involvement in human rights abuses in Xinjiang.

While Luminys described the transaction as a business expansion in the U.S. market, the lawmakers pointed out that publicly available information suggests that Dahua’s firmware and software will still be developed and controlled in China. This raises the possibility that the sale is intended to circumvent legal restrictions, such as the National Defense Authorization Act (NDAA) Section 889, which bans U.S. government procurement of products from Chinese companies like Dahua.

The lawmakers emphasized the risk that Dahua could claim it no longer manufactures these products, potentially evading the FCC’s new device authorization requirements and NDAA-related bans. In their letter, they urged the FCC to closely scrutinize the transaction and brief relevant congressional committees to ensure that national security protections remain robust and that foreign companies cannot exploit regulatory loopholes to continue selling surveillance technology with ties to the Chinese government.

This request comes amid ongoing efforts by U.S. agencies, including the FCC, Department of Defense, and Department of Commerce, to address the national security risks posed by Chinese-made communications and surveillance equipment.