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Boeing has canceled its sale of a communications satellite to a company that appears largely funded in secret by Chinese sources.
Boeing says it has canceled a controversial satellite order from a U.S.-based startup, which had received the bulk of its funding from a Chinese-government owned financial company. The deal, which critics warned could give China access to sensitive technology, comes amid a period of especially acrimonious relations between Washington and Beijing over a host of issues, including industrial espionage and intellectual property theft.
The Chicago-headquartered aerospace company announced its decision, which it said was only because of non-payment on the part of the customer, to nix the deal, worth more than $200 million, on Dec. 6, 2018. Two days earlier, the Wall Street Journal had published an expose detailing the links between the official buyer, Global IP, and a string of Chinese government operated entities and individuals with significant connections to China’s Communist Party and military establishment.
If carried out, the satellite sale would have provided the Chinese detailed information about the satellite’s technical design.
This story highlights the Chinese way of developing new technology: They generally steal it. Though their engineering upgrades are often brilliant, they have shown little innovation or originality in their work. Their entire manned program is an upgrade of the Russians Soviet-era space station program. Their decisions recently to build smallsat rockets as well as vertically landing reusable first stages only occurred after private commercial companies in the U.S. proved that both will work and can make money.
Boeing almost certainly backed out when it realized that the Chinese involvment was substantial, and exposed it to criminal penalties.
Hat tip Kirk Hilliard.