HIV samples, fake Covid kits: Inside China-linked biolab network in California

It began with a foul odour and a misplaced garden hose. It ended with a congressional investigation into what lawmakers are calling a “grave national security risk” hidden in the heart of California’s farm country.

A clandestine laboratory operating out of a supposedly vacant warehouse in Reedley has exposed a criminal enterprise involving dangerous pathogens, counterfeit medical supplies, and over USD 1.3 million in unexplained payments from China. The investigation found that the lab was part of an elaborate scheme to import Covid tests from China and pass them off as American made.

The case came to light when Jesalyn Harper, a local code enforcement officer, visited a building expecting a routine zoning inspection. Instead, she stepped into what would become a high-stakes biomedical investigation.

Inside the facility were vials labelled in English and Mandarin for pathogens including HIV, malaria, Covid-19 and Sars, alongside rows of biohazardous refrigerators, some marked “Ebola” and “Blood”. Some containers bore labels in English and Mandarin, while others were coded, obscuring their contents.

Harper also discovered thousands of lab mice, whose waste was identified as the source of the stench. As she probed further, she encountered workers assembling diagnostic kits, an activity that would later become central to a federal fraud case.

“I realised I’m in trouble, and I need to get out of this building without tipping them off that I’m scared,” Harper told Los Angelees Times, as she explained the startling discovery.

Subsequent assessments by health authorities painted a troubling picture. According to filings by the health department, the warehouse contained at least 20 infectious agents, including dengue, hepatitis B and C, herpes simplex virus, rubella, and Sars coronavirus.

However, a critical limitation hampered the investigation. Many of the vials were not formally tested. Officials said that because they were not explicitly labelled as regulated “select agents,” federal agencies such as the Centres for Disease Control and Prevention (CDC) declined to analyse them, a procedural gap now under scrutiny.

INTERNATIONAL LINKS

The prosecutors have charged a Chinese national, Jia Bei Zhu, who also goes by the name David He, with manufacturing and distributing misbranded medical devices, making false statements to regulators, and later, wire fraud and conspiracy.

Authorities allege that Zhu and his associate, Zhaoyan Wang, imported hundreds of thousands of Covid test kits from China and falsely marketed them as American-made. The shipments were allegedly disguised as pregnancy test kits to bypass regulatory restrictions, generating an estimated USD 1.7 million.

Days after the Reedley warehouse was searched in 2023, Wang reportedly left the United States for China with the couple’s newborn child and has not returned. She was later charged in connection with the scheme but has yet to enter a plea, the LA Times reported.

Zhu has pleaded not guilty, and his legal team has denied allegations that he operated an illicit biolab or had links to the Chinese government.

FINANCIAL RED FLAGS

The case has since drawn the attention of lawmakers. A report by the House Select Committee on the Chinese Communist Party revealed that Zhu received over USD 1.3 million in unexplained payments from Chinese banks, transactions that investigators say do not align with the alleged business model.

“At a minimum, the Reedley Biolab shows the profound threat that unlicensed and unknown biolabs pose to our country. At worst, this investigation revealed significant gaps in our nation’s defences and pathogen-related regulations that present a grave national security risk that could be exploited in the future,” the committee said.

DEEPENING MYSTERY

The investigation widened dramatically earlier this year when law enforcement raided a Las Vegas residence linked to Zhu. Authorities deployed drones, robotic units and hazmat teams, uncovering weapons, laboratory equipment, and more than 1,000 samples of unidentified substances.

A 55-year-old Israeli national, Ori Solomon, was arrested on federal weapons charges and for allegedly mishandling hazardous materials. Officials said the materials found in Nevada bore similarities to those discovered in Reedley, though the exact nature of the substances remains under investigation.

The FBI has said testing is ongoing, cautioning that the process is “slow and methodical.”

Zhu, in court, has denied wrongdoing, claiming the warehouse was merely being used for storage while awaiting a new facility. His legal team has argued that allegations of bioterrorism are unfounded and driven by “xenophobia” and “mischaracterisation.”

Authorities, however, remain cautious. While Reedley officials say all biological materials were removed years ago, questions persist about what was stored, how it was used, and whether similar operations exist elsewhere.

Investigators believe the Reedley operation may be part of a broader network spanning California, Nevada and international actors. Zhu’s past business dealings, including legal troubles in Canada and alleged ties to state-controlled enterprises in China, have further complicated the case.

Despite the scale of the discovery, officials acknowledge a major structural problem that the United States lacks a comprehensive system to track or regulate small, independent biolabs. Experts warn that this regulatory vacuum leaves room for dangerous pathogens to be mishandled without detection.

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