In a move to bolster national security, the House Select Committee on the Chinese Communist Party (CCP) has urged the Department of Defense (DOD) to enhance its scrutiny of U.S. defense contractors.
The committee's call to action, as reported by the Daily Caller, is aimed at mitigating the potential influence of the CCP within the U.S. defense industry.
The committee's letter to Secretary of Defense Pete Hegseth specifically advocates for the implementation of the Defense Federal Acquisition Regulation Supplement (DFARS) rule. This rule, mandated by Section 847 of the 2020 National Defense Authorization Act, necessitates a comprehensive review of U.S. defense contractors and subcontractors to identify the "true individuals or entities who ultimately own or control a business," as per the Defense Counterintelligence and Security Agency.
The committee's letter refers to a 2025 investigation by the Daily Caller News Foundation, which revealed that Jerry Wang, CEO of U.S. defense contractor S&L Aerospace Metals LLC, holds official positions in several CCP influence and intelligence organizations.
The committee's letter highlights the delayed implementation of DFARS, which has left the U.S. defense industrial base susceptible to infiltration and exploitation for nearly five years. "Congress enacted Section 847 to ensure rigorous pre-award vetting and mitigation of foreign influence risks in defense contracting, including for unclassified contracts exceeding $5 million," the letter states. "Nearly five years after its enactment, this essential regulation remains incomplete, leaving our procurement and supply chains alarmingly exposed to exploitation by the [CCP]."
The committee's letter underscores the urgency of this issue, citing the case of S&L Aerospace Metals LLC, a contractor supplying critical parts for advanced fighter jets, military helicopters, and guided missile systems. The CEO of this company, Wang, has documented ties to CCP intelligence and influence agencies, posing a significant risk to U.S. military readiness and national security.
Wang is identified as an official within multiple arms of a Chinese influence and intelligence service called the United Front Work Department (UFWD). The UFWD's operations are a "blend of engagement, influence activities, and intelligence operations that the [CCP] uses to shape its political environment, including to influence other countries' policy toward the [Peoples Republic of China] and to gain access to advanced foreign technology," according to the House Select Committee on the CCP.
The Daily Caller News Foundation discovered Chinese government records and state media reports identifying Wang as a "director" of a UFWD agency called the China Overseas Friendship Association (COFA). The U.S.-China Economic and Security Review Commission (USCC) describes COFA as an important platform through which the UFWD co-opts and interacts with overseas United Front figures.
Despite the evidence, Wang's spokesman denied any disloyalty on Wang's part, and his attorney insisted that Wang had no ties to foreign political entities. However, when asked if Wang denied being pictured in photographs at Chinese government functions alongside high-ranking Party officials and UFWD chiefs, Wang's attorney replied: "no."
In response to the Daily Caller News Foundation's investigation, Iowa Republican Sen. Joni Ernst sent a letter to Hegseth in March 2025, urging the DOD to audit "and, if necessary, suspend or cancel all contracts" with S&L. Ernst described the situation as "an alarming case of a suspected Chinese proxy infiltrating our defense supply chain, posing a severe national security risk."
The Defense Counterintelligence and Security Agency (DCSA), the federal governments "largest investigative service provider," conducts 95% of background investigations for 105 departments and agencies. Despite its over $3 billion budget, the DCSA is currently only "able to complete ~13,000 reviews," or approximately 30% of the reviews required.
The DCSA recognizes the concerns of potential adversarial involvement in the defense supply chain and works daily with firms to mitigate foreign ownership, control, or influence (FOCI) risk. However, the agency has not vetted S&L because "current law does not give DCSA the authority to do so," according to a spokesperson.
While Section 847 is a step in the right direction, L.J. Eads, a former U.S. Air Force intelligence analyst, warned that the proposed vetting process would still have significant vulnerabilities even if fully implemented. "The system leans heavily on self-disclosure, effectively banking on the honesty of adversaries, an assumption thats anything but secure," Eads said. "This creates a dangerous opening for the CCP to quietly acquire U.S. defense contractors and operate beneath the radar."
The committee's call for enhanced vetting of defense contractors underscores the importance of safeguarding national security against potential foreign influence. The case of S&L Aerospace Metals LLC serves as a stark reminder of the vulnerabilities within the U.S. defense industry and the urgent need for robust measures to mitigate these risks.
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