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U.S. senior senators of Senate Armed Services Committee
(SASC) warned that
Counterfeit electronic parts from China have ended up
in the Department of Defence (DoD) supply chain.
It poses a serious threat to national security.
A hearing was held on November 8.
On Nov.8 Carl Levin, chairman of the SASC spoke at
a hearing to 387 U.S.companies.
Surveying the DoD supply system, they found that
in recent years counterfeiting parts had increased,
making China a major threat.
Levin said that since the survey started in March this year,
almost all the interviewees,from DoD contractors
to semiconductor manufacturers, to electronic parts suppliers,
pointed out that China was the lead supplier.
With Shen Zhen believed to be the major supplier of
counterfeiting products.
The committee reviewed 100,000 pages of DoD documents,
which investigated 70 companies,
finding 1,800 suspected cases consisting of
100 million counterfeit parts.
These counterfeit chips are used on U.S. military and
Navy night vision equipment, computers and military aircraft,
such as the Air Force C-17, C-130J, C-27J cargo aircraft, and
Navy P-8A Poseidon patrol aircraft made by Boeing Co.
Boeing Co. have admitted that three counterfeit chips
have been found on P-8A.
The first discovered was a problem with ice detection module
on P-8A aircraft in 2009, the failure chips were reworked.
Committee investigators traced these counterfeit parts back
to a factory in Shen Zhen, China.
Investigators said among the 1800 suspected cases,
there are more than 70% from China.
The raw material for counterfeit chips was Electronic waste,
imported from Hong Kong to mainland China by trucks.
The Main source of delivery of counterfeit production was
traced back to Shantou, Guangzhou.
Chinese manufacturers remove old components from boards.
Sanding off the marks and removing identifying numbers,
reworking them to make them look new,
then selling the components online or in the markets.
Levin stated that the case has been verified, and
is just the tip of the iceberg.
Republican Senator John McCain said that
the counterfeit parts put U.S. troops' lives at risk.
It also increases the cost of weapons systems.
Such risks are unacceptable.
Levin said Chinese authorities must step up in its control of
counterfeit products, if China is willing to stop it, it will stop.
Otherwise, they will pay a high price. Because U.S. will
Inspect all components imported from China.
On Nov. 8, Hong Lei, spokesman for
the Chinese Foreign Ministry,
didn't respond to the two senators' criticism,
but simply answered that the Chinese Communist Party (CCP)
regime always takes care of its cooperation with other countries,
and always suppresses such counterfeit products.
Levin pointed out that the CCP have blocked
the investigation.
He said the Chinese Embassy have denied issuing visa's
to staff members when they want to visit China to investigate.
Chinese Embassy told them, this is a "sensitive issue",
any negative results of the investigation will damage U.S.-China relations.
But Levin said the real damage is China's refusal to act
against counterfeiting, that is openly carried out in that country.
Senator Levin and Senator McCain also said that
they are planning an amendment to the Defence Act.
Its purpose to restrict counterfeit products entering the supply chain as well as
asking China and other countries to take action.
NTD reporters Shang Yan and Xiao Yu.
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