East Michigan News

Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi have raised concerns regarding a transaction involving Zhejiang Dahua Technology, a prominent video surveillance equipment manufacturer from the People's Republic of China. The two lawmakers addressed their concerns in a letter to Federal Communications Commission Chairwoman Jessica Rosenworcel.

Dahua is on the Department of Commerce's Entity List due to its involvement in the Chinese Communist Party's actions in Xinjiang and is also recognized by the Department of Defense as a "Chinese military company." Recently, the FCC established rules preventing Dahua cameras from being sold in the United States for national security reasons.

Moolenaar and Krishnamoorthi are concerned about reports suggesting that Dahua may have entered into an agreement to bypass these FCC restrictions. The deal involves selling Dahua Technology USA to Luminys Systems, a unit of Foxlink.

The lawmakers stated, "However, publicly available information about the deal suggests Dahua’s firmware and software will still be developed in, and therefore controlled by, the PRC." They further noted that analysts expect Dahua might use Foxlink to claim they no longer produce these products, potentially circumventing U.S. regulations.

The letter requests that the FCC "examine this transaction and brief Select Committee staff regarding the possibility that it may be an effort to circumvent statutory restrictions on Dahua cameras in the U.S., without addressing the underlying national security risks such restrictions seek to remedy."

Read the lawmakers' letter HERE.