Washington DC [US] June 20 : The House committee urged the Department of Defence (DOD) on Monday to enhance the vetting process for American defence contractors to protect against the risk of influence from the Chinese Communist Party (CCP), as reported by the Daily Caller News Foundation (DCNF).
In a letter addressed to Secretary of Defence Pete Hegseth, the House Select Committee on the CCP specifically requests that the DOD enforce the Defence Federal Acquisition Regulation Supplement (DFARS) rule outlined in Section 847 of the 2020 National Defence Authorization Act, which mandates a thorough assessment of U.S. defence contractors and subcontractors to identify the "true individuals or entities who ultimately own or control a business," according to the Defence Counterintelligence and Security Agency. The correspondence highlighted that Jerry Wang, the CEO of U.S. defence contractor S&L Aerospace Metals LLC, is associated with various CCP influence and intelligence organizations.
The letter from the House Select Committee on the CCP indicated that the implementation of DFARS has been postponed for nearly five years, which leaves the U.S. defence industrial base "open to infiltration and exploitation." "Congress established Section 847 to ensure thorough pre-award vetting and the mitigation of foreign influence risks in defence contracting, even for unclassified contracts exceeding USD 5 million," the letter states. "Almost five years post-enactment, this critical regulation remains unfulfilled, leaving our procurement and supply chains alarmingly susceptible to exploitation by the CCP," as noted in the DCNF report.
"Recent investigative reporting emphasises the importance of addressing this issue," the letter goes on. "Notably, disclosures concerning S&L Aerospace Metals LLC, a contractor that provides essential components for advanced fighter jets, military helicopters, and guided missile systems, reveal significant vulnerabilities. The CEO of this company has established connections with CCP intelligence and influence agencies, presenting a substantial risk to our military preparedness and national security," the DCNF report referenced.
Wang, the CEO of S&L, is listed as an official in various components of a Chinese intelligence and influence service known as the United Front Work Department (UFWD), as reported by DCNF in February 2025. The UFWD's activities encompass a "combination of engagement, influence operations, and intelligence initiatives that the [CCP] employs to shape its political landscape, including influencing the policies of other nations regarding the [People's Republic of China] and acquiring advanced foreign technology," according to the House Select Committee on the CCP.
In addition to other roles within the UFWD, Chinese government documentation and state media have named Wang as a "director" of a UFWD body known as the China Overseas Friendship Association (COFA). COFA serves as a significant channel through which the UFWD co-opts and engages with overseas United Front figures," according to the U.S.-China Economic and Security Review Commission (USCC), a congressional body established to examine the national security ramifications of the relationship between the U.S. and China, as reported by DCNF.