Rubio Asks for CFIUS Review of Acquisition Involving Chinese Pharmaceutical Company
Sen. Marco Rubio, R-Fla., urged the Committee on Foreign Investment in the U.S. to review the potential purchase of Pennsylvania-based GNC Holdings by Harbin Pharmaceutical Group, a state-controlled Chinese pharmaceutical company. Rubio said the purchase falls within CFIUS’s purview because it involves a Chinese company acquiring sensitive data on “millions” of GNC Holdings’ customers and retail locations “on and around military installations” across the U.S.
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“The acquisition of a major health and nutrition chain with over 5,200 retail stores in the United States and an expansive customer base presents the opportunity for state-directed actors to purchase [sensitive American personal data] legally,” Rubio said in a Sept. 10 letter to the Treasury Department. Rubio said information found on the Chinese pharmaceutical company’s website “indicates” it has worked with the Chinese military to support China’s civil-military fusion efforts. Treasury didn't comment.
Rubio’s letter comes as CFIUS places more scrutiny on investments involving Chinese companies acquiring data on U.S. citizens and U.S. critical technologies (see 2008250038). Other agencies, including the Commerce Department, have tried to restrict China’s civil-military fusion efforts through sanctions and export restrictions, including an April Commerce rule that imposed increased license requirements for shipments to military end-users in China (see 2007090075).