Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi of the US House Select Committee on the Chinese Communist Party have requested the Federal Communications Commission (FCC) to investigate a transaction involving Zhejiang Dahua Technology. This Chinese surveillance equipment manufacturer recently sold its US subsidiary, Dahua Technology US, to Luminys Systems, a company linked to the Taiwanese firm Foxlink.
The lawmakers expressed concerns that this sale might be an attempt to bypass US national security restrictions. Dahua's products, especially video surveillance equipment, are banned in the US due to the company's connections to the Chinese Communist Party and alleged human rights abuses in Xinjiang.
Despite Luminys' claims of expanding its US market presence, it appears that Dahua's firmware and software will still be developed in China. This raises suspicions that the transaction is intended to evade legal restrictions like the National Defense Authorization Act (NDAA) Section 889, which prohibits the US government from buying products from companies like Dahua.
The lawmakers urged the FCC to thoroughly examine the transaction and report to congressional committees to ensure national security protections are upheld. This request is part of ongoing efforts by US agencies to address security risks from Chinese-made communications and surveillance equipment.
US lawmakers are people who make laws in the United States. They are like the members of parliament in India.
FCC stands for Federal Communications Commission. It is a US government agency that regulates communication by radio, television, wire, satellite, and cable.
Dahua Technology is a company from China that makes security cameras and other electronic products. It is known for its technology in surveillance.
Luminys Systems is a company that is linked to Foxlink, which is involved in technology and electronics. It is the company that bought Dahua's US subsidiary.
Foxlink is a company that makes electronic parts and is based in Taiwan. It is connected to Luminys Systems.
The Chinese Communist Party is the ruling political party in China. It is the only party that governs China and makes important decisions for the country.
US national security refers to the safety and protection of the United States from threats. It involves keeping the country safe from things like spying or attacks.
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