Rep. Dunn seeks probe of Alabama shipbuilder’s alleged China links.

Is a U.S. Navy Vendor Tied to China?

Investigation Urged by House Subcommittee Member

During a recent subcommittee hearing, Rep. Neal Dunn (R-Fla.) raised concerns about a U.S. Navy vendor with alleged ties to a Chinese company. Dunn questioned Rear Adm. Thomas J. Anderson and Rear Adm. Casey Moton of the U.S. Navy’s Program Executive Offices. He expressed concern that Austal USA, a Mobile, Alabama-based company, had taken a contract from a company in his district despite three of its executives being indicted for fraud by the Department of Justice. Additionally, Austal’s Australian parent company had close ties with a Chinese shipbuilder.

Dunn has been critical of Austal USA since June 2022, when the U.S. Coast Guard awarded the company the second phase of a $3 billion contract. According to Dunn, Austal USA had done shoddy work on a contract to build Littoral Combat Ships for the Navy.

The Department of Justice announced last March that three company officers in Mobile had been indicted for defrauding investors. It is not clear if the men are still associated with the company, but their names are not found on the Austal USA website.

Dunn was incredulous that the company had also been awarded a $50 million contract to build command control units for American nuclear submarines even though its parent company, Austal Limited of Australia, had partnered with a Chinese shipbuilder from 2016 to 2021.

“It should alarm everyone that a company like Austal that has won multiple Defense and Homeland Security contracts has such close ties to the CCP. This is a deeply troubling national security threat,” Dunn said.

The Navy officers told the subcommittee that the United States needs to bolster its maritime industrial base if it hopes to keep pace with China’s fleet. According to the admirals, the United States has 296 ships to China’s 390. They said the main reason for the disparity is China’s strong emphasis on commercial shipbuilding.

Rep. Clay Higgins (R-La.) took issue with Anderson’s comparison. He pointed out that China benefits from “slave labor.” Anderson agreed that China did benefit from forced labor. Anderson said his point was that other countries emphasize building their industrial base and have a stronger industrial workforce.

The United States has seven major shipyards that focus on shipbuilding. Two of those shipyards, one in Groton, Connecticut, the other in Portsmouth, Virginia, specialize in nuclear ships and submarines. He said the edge America has over other countries is the quality of its ships and the men and women who sail them.

Key Takeaways:

• Rep. Neal Dunn (R-Fla.) has raised concerns about Austal USA, a U.S. Navy vendor with alleged ties to a Chinese company.
• Austal USA has won multiple Defense and Homeland Security contracts despite three of its executives being indicted for fraud by the Department of Justice.
• The United States needs to bolster its maritime industrial base if it hopes to keep pace with China’s fleet.
• The United States has seven major shipyards that focus on shipbuilding, with two specializing in nuclear ships and submarines.

What are your thoughts on this national security threat? Share your comments below.