On Monday, September 22, the US House of Representatives’ committee on China sent a letter to the Secretary of Commerce, Howard Lutnick, urging the Department of Commerce to investigate Anker Innovations Technology Co., a Chinese manufacturer of electronic products and mobile accessories. The letter alleges that the company engages in unfair pricing practices and potential illegal evasion of US tariffs.
According to John Moolenaar, the Republican chairman of the committee on China, the infiltration of the Chinese Communist Party in the consumer electronics industry is exemplified by companies like Anker, which has even sold security devices allowing access to unencrypted video streams.
Moolenaar sent the letter to Lutnick last Friday, urging the Department of Commerce to investigate Anker. He claimed that Anker received at least $12 million in subsidies from the Chinese government in 2023, providing them with unfair access to the US market. Some of the subsidies received by Anker were not disclosed, making it difficult for non-subsidized companies to compete with them. As a result, Anker’s revenue grew nearly threefold from 2020 to 2024.
In addition to unfair subsidies, Moolenaar emphasized Anker’s import practices and potential tax evasion. The committee’s review indicated that Anker used various illegal means to evade US tariffs, such as misclassifying products to obtain non-China origin labels (e.g., misclassifying batteries as wireless chargers).
Anker’s stock price dropped by 8% on Monday, marking its largest decline since April.
The letter also mentioned that Anker’s Eufy brand home security cameras may pose a risk of “foreign surveillance.” Moolenaar stated that through the Eufy brand, Anker’s security camera business has significant security vulnerabilities and has been accused of misleading the public regarding these issues.
Public reports revealed that Anker admitted the inaccuracy of its statements on the encryption of Eufy security cameras, allowing access to unencrypted video streams. Worst-case scenario, Anker might embed foreign surveillance and sabotage capabilities in household items, posing a risk. Best-case scenario, Anker could be using anti-competitive practices to dominate the strategic supply chain.
The letter emphasizes the necessity to protect American brands and innovators from unfair competition by China, as well as from the inherent dangers and harms posed by cheap manufacturing and potentially defective products. These concerns align with some of Lutnick’s public statements.
Anker Innovations has gained a foothold among American electronic product consumers with its affordable chargers and power banks.