Two Chinese Nationals Accused of Conspiring to Break Export ControlsApril 08, 2011

 

Two Chinese nationals were indicted by a federal grand jury for trying to purchase restricted defense items used in the military and aerospace industries, according to a report in The Washington Times.

Hong Wei Xian, 32, and Li Li, 33, both from the Peoples Republic of China, are accused of conspiring to break the Arms Export Control Act by trying to smuggle out the prohibited items. They are also accused of trying to export items that are on the United States Munitions List, also a violation of the Arms Export Control Act.

More specifically, the two are accused of trying to obtain radiation-hardened microchips, which are programmable chips that are read-only and are used to store startup programming for computer systems, and that can withstand conditions in outer space, according to the article.

Xian is listed as the president of Beijing Starcreates, a company that specializes in importing and selling programmable read-only memory chips to China Aerospace Science and Technology Corporation. Li is listed as the company's vice president.

Interestingly, the Chinese government controls China Aerospace Science and Technology. The company is charged with researching, designing and developing strategic and tactical missile systems, and launch vehicles for China, according to The Washington Times.

Since 1990, the U.S. government has established an arms embargo that prohibits the export, re-export or transfer of the defense items to China. The prohibited items are on the United States Munitions List and include spacecraft systems and associated equipment.

The indictment, which was unsealed in Alexandria, Virginia, states that both of the accused were aware that a license was required but did not seek one. They are also accused of not identifying who the end-user would be or what the items would be used for. The indictment goes on to say that the alleged violators planned to break the orders into several shipments to countries other than China before being reshipped to their final destination in China. If they are convicted, they could serve 20 years in prison on export violation charges, according to the article.