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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.
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 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).
As someone who’s seen what happens when the truth is distorted, I know how unfair it feels when those who’ve sacrificed the most lose their voice. At SOFREP, our veteran journalists, who once fought for freedom, now fight to bring you unfiltered, real-world intel. But without your support, we risk losing this vital source of truth. By subscribing, you’re not just leveling the playing field—you’re standing with those who’ve already given so much, ensuring they continue to serve by delivering stories that matter. Every subscription means we can hire more veterans and keep their hard-earned knowledge in the fight. Don’t let their voices be silenced. Please consider subscribing now.
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Brandon Webb former Navy SEAL, Bestselling Author and Editor-in-Chief
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The Dragon in the PX: How the Chinese Communist Party Set Up Shop on U.S. Military Bases – SOFREP
