U.S. Rep. Pat Harrigan launches bold initiative to remove Chinese Communist Party-owned retailers from military bases, targeting GNC and its 80+ locations operating with minimal oversight on American installations.
At a Glance
- Rep. Pat Harrigan has introduced the “Military Installation Retail Security Act” to ban retailers owned by China, Russia, Iran, or North Korea from U.S. military bases
- GNC, 100% owned by China’s state-run Harbin Pharmaceutical Group, currently operates more than 80 stores on American military installations
- The bill would terminate existing contracts with companies that misrepresent foreign ownership and require national security reviews for all retailers with foreign ties
- Concerns include potential collection of personal data, spending habits, and behavioral patterns of military personnel
- GNC’s CEO claims Chinese ownership has no access to personal data and that the company complies with U.S. government regulations
National Security Concerns Drive Legislative Push
North Carolina Representative Pat Harrigan is taking aim at foreign adversaries operating retail businesses on American military bases. His proposed legislation, House Resolution 2551, specifically targets companies owned or controlled by China, Russia, Iran, and North Korea. The Military Installation Retail Security Act would prohibit these entities from maintaining physical storefronts on U.S. military installations, with particular focus on the Chinese Communist Party’s presence through retailers like GNC, which operates over 80 stores on American bases.
“Right now, a company owned by the Chinese Communist Party is operating over 80 stores on American military bases. These stores are in a position to collect personal data from our troops, operate with almost no oversight, and answer directly to a hostile foreign government. That’s not just reckless, it’s a national security threat. My bill closes the loopholes and kicks these companies off our bases for good.” sources say.
Harrigan, a former Army special operator himself, has repeatedly emphasized the dangers posed by allowing adversarial nations to operate businesses in close proximity to America’s military personnel. The bill would not only ban such retailers but would also terminate existing contracts with companies found to be untruthful about their foreign ownership status, ensuring hostile nations cannot exploit America’s military infrastructure or personnel.
The GNC Problem: From American Company to Chinese Ownership
At the center of this legislative initiative is GNC (General Nutrition Centers), once a family-owned business from Pittsburgh that filed for bankruptcy in 2020 and was subsequently acquired by China’s Harbin Pharmaceutical Group for $770 million. Despite concerns raised at the time by officials including Senator Marco Rubio, the sale proceeded through bankruptcy court approval. GNC now operates on approximately 85 U.S. military bases, selling health and nutrition products directly to service members and their families.
“Chinese ownership of a company that’s “been allowed to operate on our installations, collect data from our troops, and do it all under the radar is a stunning failure of judgment,” Harrigan said in his statement. “My Military Installation Retail Security Act shuts this down. It rips up the contracts, closes every loophole, and ensures our enemies can’t exploit our infrastructure or our people ever again.”
Particularly concerning to lawmakers is that GNC’s deals are exempt from federal contracting standards. When the company registered on SAM.gov in 2022, it reportedly did not disclose its Chinese ownership, creating what Harrigan describes as a dangerous lack of transparency. He characterizes the supplement retailer as “100% owned by China’s state-run Harbin Pharmaceutical Group,” making it a direct arm of a foreign adversary operating within America’s most sensitive military installations.
Defense and Counterarguments from GNC
GNC has been operating on military installations since 2002, well before its acquisition by Chinese interests. The company’s CEO, Michael Costello, has publicly defended the company’s practices, insisting that Chinese ownership does not compromise security. According to Costello, GNC provides quarterly audits to the Committee on Foreign Investment in the United States (CFIUS) and maintains strict data security protocols.
“Our Chinese ownership sees no personal information and, in fact, they have zero access to our data and our networks,” CEO Michael Costello said in an interview. “Nothing gets transferred to China in terms of personal information or other data. We’ve been on bases for a long time and we take it very seriously in terms of making sure that none of that data, or even the data if you shop in our store in New York, is not going to China.”
Despite these assurances, Harrigan and supporters of the legislation remain unconvinced. They point to broader concerns about foreign adversaries gaining access to critical infrastructure through various means, including retail operations and real estate purchases near military installations. The legislation would require a comprehensive national security review of all on-base retailers with foreign ties and ensure that future retail agreements have greater transparency and oversight mechanisms in place.
Looking Forward: The Path to Implementation
Harrigan is seeking to include his Military Installation Retail Security Act in the annual defense authorization measure, which would significantly increase its chances of becoming law. The bill has gathered attention as part of broader efforts to protect American military installations from foreign influence. If passed, the Department of Defense would be prohibited from entering into or maintaining agreements with retailers owned by entities in China, Russia, Iran, or North Korea.
The congressman has also called for a Department of Defense investigation into the full extent of Chinese retail presence on military bases. This investigation would determine whether additional protections are needed beyond those outlined in the current legislation. With growing bipartisan concern about foreign ownership of businesses operating in sensitive locations, the bill represents an important step in addressing what many see as a significant national security vulnerability that has gone unchecked for too long.
