US House China Panel Urges Probe of Anker Over Tariffs

(Bloomberg) — The top lawmakers on the House China committee called on Commerce Secretary Howard Lutnick to investigate Chinese electronics and phone accessory manufacturer Anker Innovations Technology Co. for what they called unfair pricing and possible illegal evasion of US tariffs.

The Chinese consumer tech company deploys “unlawful methods” to avoid US tariffs, including misclassifying product codes and illegally routing products through Southeast Asian countries to duck payment of trade levies, the lawmakers said, according to a letter seen by Bloomberg News. Anker’s shares slid 8% Monday in their biggest slide since April.

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The House Select Committee on China sent the letter to Lutnick on Friday, per its date and signature. In their letter, Republican Chairman John Moolenaar and Democratic Ranking Member Raja Krishnamoorthi, urged Lutnick to direct the Commerce Department to probe the company’s practices. The lawmakers also said that Anker received at least $12 million in subsidies from the Chinese Communist Party in 2023, allowing it to gain “unfair access” to the US market.

Anker said in an emailed message that it has “initiated an internal review procedure and will hire a US adviser to assist in checking facts and evaluating relevant compliance issues.”

“We will provide further explanations to relevant authorities and the public at an appropriate time after completing necessary verification,” it added.

The company has built a loyal following among US electronics consumers with budget-priced chargers and power banks. Apple Inc sells Anker products at its stores, certifying many of them as meeting its performance standards. Led by a former Google engineer, the company went public in China in 2020 and is now pursuing a Hong Kong initial offering. Anker did not respond to an emailed request for comment over the weekend.

The letter highlights the need to “protect American brands and innovators from both unfair Chinese competition and the inherent dangers and hazards of cheaply made, potentially compromised products,” echoing some of Lutnick’s own public comments that accuse US trading partners of dumping “dirt cheap” goods in the US.

–With assistance from Jessica Sui.

(Updates with share action from the second paragraph.)

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