Press Release: 4/2/2025

Congressmen Auchincloss, Krishnamoorthi Request Investigation Into Possible Sanctions Violations by Yantai Iray Technology Co.

 

 

WASHINGTON, D.C. – Today, Congressman Jake Auchincloss (D-MA) and Ranking Member Raja Krishnamoorthi (D-IL) of the House Select Committee on the Strategic Competition Between the U.S. and the CCP sent a letter to Secretary of the Treasury Scott Bessent and Secretary of Commerce Howard Lutnick, requesting both departments investigate whether Yantai iRay Technology Co., Ltd. (“iRay”), a company in the People’s Republic of China (PRC) sanctioned by the Treasury Department, may be committing sanctions violations via a network of subsidiaries and directly related companies in the United States.

Among these subsidiaries is iRayUSA, who after iRay’s sanctioning in May 2024 for supplying Russia-based end users with controlled, dual-use technology claimed to its U.S. distributors that “iRayUSA’s manufacturing partner is a separate entity” from iRay. However, government filings along with other publicly available information strongly suggest that iRayUSA’s contention is false and that it, along with InfiRay Outdoor, Visir Inc. (brand name RIX Optics), and Inlumen Technologies (brand name Nocpix) may be violating U.S. sanctions by continuing to sell and distribute iRay products in the United States. 

Reps .Auchincloss and Krishnamoorthi write in the letter, “Given their subsidiary or other close relationship with iRay, InfiRay Outdoor, iRayUSA, Visir Inc., and Inlumen Technologies appear to potentially be in violation of U.S. sanctions. Your agencies should also consider whether the operations of these entities pose a national security risk to the United States given the dual-use nature of their products and the sensitive data obtained through them. Thermal technology is a critical enabler of lethality and capability on the modern battlefield, and PLA access to U.S. thermal sensor data could allow it to refine its own capabilities while degrading U.S. leadership in this field.”

The Treasury Department imposed sanctions on iRay on May 1, 2024 for operating in the technology sector of the Russian Federation, including by supplying Russia-based end users with items like telescopic thermal sights and military thermal imagers controlled by the Department of Commerce’s Bureau of Industry and Security Common High Priority List. 

“It is highly concerning that iRay, a company sanctioned for supporting Russia’s brutal and illegal invasion of Ukraine, appears to still be peddling its products in the United States through a shell game of U.S.-based subsidiaries," said Ranking Member Krishnamoorthi. "In addition, iRay’s potential access to data from American users of its advanced targeting technologies could allow China’s military to dominate these capabilities at U.S. expense. We urge the Treasury and Commerce Departments to investigate this activity and appropriate enforcement actions.”

"Federal authorities must enforce sanctions against Chinese & Russian military cooperation," said Congressman Auchincloss. "Appeasement of one is weakness to another."

The members request the Treasury Department and Commerce Department provide them with a briefing on any information available to the departments regarding iRay and its subsidiaries by no later than April 11, 2025.