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Prominent U.S. Defense Contractors Linked To Chinese Government: Report

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CHICAGO - NOVEMBER 28: The Boeing logo hangs on the corporate world headquarters building of Boeing November 28, 2006 in Chicago, Illinois. Orders for U.S. manufactured durable goods saw an 8.3 percent decrease in October. Aircraft orders dropped 45 percent for the same period.
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Several major U.S. defense contractors have been linked to the Chinese government, according to a new report.

A new report from Fox News reveals that three of America’s most prominent defense contractors have ties with firms connected to the Chinese government, which critics say present a number of challenges to national security.

The report says that Raytheon, Boeing, and Bell Flight “maintain relationships” with firms connected to the Chinese government. Some consultants have pointed out that doing business with Chinese government linked entities entails a variety of risks.

“Doing a relatively significant amount of business in China changes the risk profile now more than ever for any U.S. company, whether for compliance, cyber, reputation, security or other risks,” Isaac Fish, CEO of Strategy Risks, told Fox.

Fish added that companies should keep in mind the possible danger of “exposure” to the Chinese Communist Party.

“Those risks are particularly critical for companies that safeguard U.S. national defense and security,” Fish added. “U.S. defense contractors need to better understand their risk exposure to China and the Chinese Communist Party, so they can reduce their China risks to better serve the needs of the U.S. military and national security.”

Pratt & Whitney (P&W) and Collins Aerospace Systems, both subsidiaries of Raytheon, have numerous business ventures in China, with several enterprises with a state owned venture affiliated with the People’s Liberation Army.

P&W does business with the China Aviation Industry Corporation as well as Xi’an Aircraft, both companies on the Treasury Department’s Non-SDN Chinese Military-Industrial Complex Companies List.

The purpose of this list is to denote entities in China which are suspected of working in conjunction with the Chinese military.

Collins Aerospace also is being scrutinized for its China ties. With nine business enterprises and 15 locations, Collins says on its website that it has shown its commitment to China for 40 years.

“Our growing presence in China has been made possible by our company’s significant investments in the country, as well as strong corporate and personal relationships that have been formed over the last three decades,” the company explains.

Collins reportedly works with China’s Ministry of Industry and Information Technology, AVIC, as well as the China Electronics Technology Company.

Both Bell Flight and Boeing distanced themselves from any connection to conducting military business with China.

A spokesperson told Fox that Bell, “does not do any military business in China and remains committed to supporting safe operations for the civilian helicopter communities in China, including corporate, energy, health and public safety.”

Boeing also disavowed any ties to the Chinese military telling the outlet that it “not sell Boeing defense platforms to the Chinese military.”

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