Radiation-Hardened Aerospace Technology to China –

On September 30, 2011, defendants Hong Wei Xian, aka “Harry Zan,” and Li Li, aka “Lea Li,” were sentenced in the Eastern District of Virginia to 24 months in prison for conspiracy to violate the Arms Export Control Act and conspiracy to smuggle goods unlawfully from the United States, in connection with their efforts to export to China radiation-hardened microchips that are used in satellite systems and are classified as defense articles. Both defendants pleaded guilty to the charges on June 1, 2011. The defendants were arrested on September 1, 2010 in Budapest by Hungarian authorities pursuant to a U.S. provisional arrest warrant. On April 4, 2011, they made their initial court appearances in federal court in the Eastern District of Virginia after being extradited from Hungary. According to court documents, Zan and Li operated a company in China called Beijing Starcreates Space Science and Technology Development Company Limited. This firm was allegedly in the business of selling technology to China Aerospace and Technology Corporation, a Chinese government-controlled entity involved in the production and design of missile systems and launch vehicles. According to court documents, from April 2009 to September 1, 2010, the defendants contacted a Virginia company seeking to purchase and export thousands of Programmable ReadOnly Microchips (PROMs). The defendants ultimately attempted to purchase 40 PROMs from the Virginia firm and indicated to undercover agents that the PROMs were intended for China Aerospace and Technology Corporation. The investigation was conducted by ICE and DCIS.