The U.S. Justice Department and the Federal Communications Commission (FCC) are conducting a probe into a California-based radio broadcasting company that is 60 percent owned by a Chinese state enterprise's subsidiary. A media article released on Monday regarding the existence of a network of covert Chinese radio broadcasts prompted the two federal agencies to look in to the matter.

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Reuters reported that the California broadcast company under investigation is the G&E Studios and its owner has been identified as James Su, who hails from Shanghai but has naturalized as a U.S. citizen. The media outlet published an investigation detailing how the Chinese government broadcasts pro-Beijing news not only in the United States but in Asia-Pacific and Europe as well.

The FCC is investigating Su and his company to find out if he violated rules that does not allow foreign governments or their agents to obtain a U.S. radio broadcast license. Although foreigners including organizations are given the permission to own a radio station, they are only allowed up to 20 percent stake in the station, or a 25 percent stake if it involves the mother company of the radio station.

Su has admitted that China Radio International subsidiary owns a large part of his company. Su said that his company does not own a single radio station but actually leases the air time of Washington radio station WCRW and Philadelphia station WNWR.

Unlike most commercial radio stations in the U.S. the G&E leased stations only broadcasts news that follows the official line of the Chinese government.

Through various legal schemes, Su is now the owner or co-owner as well as the lessor to some radio stations across the United States. Radio broadcast contents are either prepared by the G&E in the U.S. or the CRI in Beijing, China.

A spokesperson for Su said that G&E has not violated a single law since they are only leasing air time and have not bought any radio station.

Further investigations revealed that CRI affiliated radio stations are estimated to be around 33 and are spread in around 14 countries.

TagsFederal Communications Commission, us hustice department, China Radio International, WCRW and WNWR, covert chinese broadcast