Imagine strolling through a U.S. military base’s shopping area, picking up your favorite protein powder or multivitamins, only to discover that the store you’re patronizing is owned by the Chinese Communist Party (CCP). Sounds like something straight out of a novel about the dystopian future of America, right? Unfortunately, this is the reality we’re facing today. The nutritional supplement retailer GNC, a familiar sight on many military installations, is now under the control of a Chinese state-run enterprise. Let’s explore how this happened, what it means for our national security, and what steps are being taken to address this glaring problem.
GNC: From Bankruptcy to Beijing’s Arms
In June 2020, GNC filed for Chapter 11 bankruptcy after facing massive financial trouble, including nearly $1 billion in debt and falling revenue—problems made worse by the COVID-19 pandemic. The bankruptcy filing gave GNC a legal path to either reorganize or sell its assets to stay afloat. Harbin Pharmaceutical Group, a Chinese state-owned company that had already been GNC’s biggest shareholder and joint venture partner since 2018, stepped in as the “stalking horse bidder.” That term means Harbin set the minimum price—$760 million—for GNC’s assets and was first in line to buy if no better offers came in.
The plan was to hold an auction to see if other buyers would step up, but no one did. With no competition, GNC canceled the auction and handed the win to Harbin. In October 2020, a U.S. bankruptcy court approved the deal, which allowed Harbin to purchase almost all of GNC’s assets for about $770 million. That price tag included a mix of cash and other financial commitments. Harbin had already invested $300 million in GNC in exchange for the rights to sell its products in China, making it a familiar and convenient retailer in the communist nation.
In a nutshell, the bankruptcy process smoothed the way for GNC’s sale to Harbin, allowing the supplement giant to shed some of its financial baggage and continue operating under new, Chinese state-owned control.
This acquisition granted the CCP a direct foothold within the retail spaces of U.S. military bases, as GNC operates over 80 stores on these installations. There are four on Fort Bragg alone.
As of last count, there were 2,115 GNC stores operating on U.S. soil.
The National Security Conundrum
The acquisition of GNC by the Chinese state-owned Harbin Pharmaceutical Group has sparked serious national security concerns, particularly because of how many retail stores GNC operates on U.S. military bases. Critics warn that this setup opens the door to potential data exploitation and intelligence gathering by the Chinese Communist Party (CCP).
Through loyalty programs and supplement consultations, GNC collects personal information from service members, including phone numbers, email addresses, home addresses, and even health-related data.
North Carolina congressman Pat Harrigan has been especially vocal, pointing out that the CCP essentially has a presence inside our military communities. He warned that the data collected could be used to build detailed profiles on troops—tracking their behaviors, deployment cycles, and even psychological vulnerabilities.
In addition to the data concerns, there are worries about surveillance risks. Harrigan emphasized that this isn’t just about names and addresses; it’s about observing patterns that could be weaponized against U.S. personnel. He called GNC’s presence on military installations “a significant opportunity for intelligence collection” by a hostile foreign power. There’s also the matter of product safety. For example, there have been incidents involving hemp-containing protein shakes sold at GNC locations on military bases, raising alarms about the quality and safety of products that could potentially harm service members or affect military readiness.
Harrigan also blasted the federal government’s oversight—or lack thereof—over how GNC disclosed its foreign ownership. He accused the company of exploiting bureaucratic loopholes to avoid proper scrutiny and labeled the situation “an outrageous breach of our national security.” In response, Harrigan introduced the Military Installation Retail Security Act, a piece of legislation designed to bar companies owned by adversarial governments, like China, from operating retail outlets on U.S. military bases. The bill also seeks to close existing loopholes and end any current contracts with foreign-owned businesses that could pose a threat to American military personnel.
Legislative Action: Closing the Barn Door
Recognizing the absurdity of the situation, Rep. Harrigan introduced the Military Installation Retail Security Act. This legislation aims to:
- Ban companies owned by adversarial nations from operating retail stores on U.S. military installations.
- Terminate existing contracts with companies that misrepresented their foreign ownership.
- Require national security reviews of on-base retailers with foreign ties.
- Enhance transparency and oversight for future retail agreements on military bases.
Harrigan’s bill is a direct response to the realization that while we’ve been vigilant about foreign entities purchasing land near our bases, we’ve somehow overlooked the fact that the CCP has been operating within them.
The Broader Picture: CCP’s Tentacles in the U.S.
GNC isn’t an isolated case. The CCP’s influence has been creeping into various sectors of American life, often under the radar. For instance, the Department of Defense maintains a list of “Chinese military companies” operating directly or indirectly in the United States. The inclusion of companies like Tencent on this list underscores the pervasive nature of CCP-affiliated businesses infiltrating the U.S. market.
Government Measures: Playing Catch-Up
In response to growing concerns, the U.S. government has been expanding its oversight. The Committee on Foreign Investment in the United States (CFIUS) has broadened its authority to review foreign real estate transactions near military bases. This move aims to prevent adversaries from acquiring sensitive land, but it doesn’t address the issue of existing CCP-owned businesses operating on military installations.
Forward Focus: Time to Evict the Dragon
The revelation that the CCP owns and operates retail stores on U.S. military bases is a wake-up call. It looks bad, and there are tangible risks to our national security. While legislative efforts like the Military Installation Retail Security Act are steps in the right direction, they underscore a broader issue: the need for comprehensive scrutiny of foreign influence within our borders.
It’s high time we show the dragon the door and ensure that our military installations remain sanctuaries of security, not shopping malls for foreign adversaries.