Chinese Aviation Firm Seeking Investment in U.S. Aircraft Makers

Washington Free Beacon | 7/10/2018 | Bill Gertz
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BY: Bill Gertz

A Chinese state-run aircraft and missile manufacturer linked to military programs and past espionage is attempting to purchase interests in major U.S. aircraft manufacturers.

Trump - Administration - Officials - Aviation - Industry

According to Trump administration officials, the Aviation Industry Corp of China, known as AVIC, is seeking to gain access to advanced technology through attempts to buy minority stakes in major aircraft companies.

The attempts were detected by U.S. intelligence agencies several months ago and reported internally within the U.S. government.

Unit - Activity - Air - Force - Group

One unit that has been tracking the activity is a special Air Force group known as the Office of Competitive Economic Analysis.

Spy agencies are concerned about the buy-in effort since AVIC already has made inroads into the U.S. aircraft supply chain by buying aviation support companies and those involved in commercial aviation.

AVIC - Actor - Enterprises - Technology - Administration

"AVIC is a bad actor that is one of several state-owned enterprises that is working to mop up western technology," said an administration official familiar with the AVIC activities.

No details of the Chinese efforts to buy into American aircraft companies such as Boeing, Northrop Grumman, General Dynamics, and Lockheed Martin could be learned.

Information - AVIC - Operations - Industry - Source

However, information on AVIC covert operations targeting American industry may have come from a source in the state-run conglomerate. The Hong Kong newspaper Apple Daily reported in May 2016 that Guo Enming, deputy director of AVIC's Science and Technology Commission had dropped out of sight and was suspected of spying.

AVIC espionage was revealed in the case of Dongfan "Greg" Chung, an aerospace engineer for Boeing who was convicted of economic espionage in 2009 for supplying aviation and space secrets to China.

Chung - Spy - Chi - Mak - Gu

Chung worked with another Chinese spy, Chi Mak, who worked with a Gu Weihao, who is described in court papers as a senior official of AVIC that is under the direct leadership of the PRC State Council."

The court papers describe AVIC as a...
(Excerpt) Read more at: Washington Free Beacon
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