Bloomberg News
By Tony Capaccio
May 21, 2012
The U.S. Air Force suspended in January a Shenzhen, China- based company from supplying parts to U.S. contractors after it sold about 84,000 suspect components, many of them installed on U.S. aircraft, according to an example cited in the U.S. Senate Armed Services Committee report released yesterday.
The panel’s report outlines the results of a 14-month investigation disclosing dozens of examples of suspected counterfeit electronic parts. Saying U.S. companies and the military services didn’t crack down on abuses, the committee said the defense industry “routinely failed to report cases of suspect counterfeit parts, putting the integrity of the supply chain at risk.”
The report didn’t cite any examples of counterfeit parts causing damage such as lives lost or planes that crashed.
The committee said it found “overwhelming and undeniable evidence to support” the conclusion that China hasn’t taken steps to stop operations “that are carried out openly in that country...”
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