Some of America’s largest defense contractors reportedly have substantial connections to the Chinese government and its ruling Chinese Communist Party (CCP).
The companies that have close working relationships with businesses that work directly with the CCP include Raytheon, Boeing, Lockheed Martin and Bell Flight.
Strategy Risks CEO Issac Stone Fish has warned of significant security risks associated with the relationships defense contractors maintain with the Chinese government. Strategy Risks is a consulting firm specializing in risk management issues related to China.
Fish told Fox News that when any American company does business involving China, risks including compliance, cybersecurity, and government regulations are all enhanced. He added that the risks are “particularly critical” for firms involved in U.S. national security and defense.
He added that American defense contractors need a deeper understanding of their risk exposure because of business they do with CCP-connected firms. Fish went on to say that it should be obvious that firms providing defense services to the U.S. should be dedicated to protecting its military and national security.
As an example of the risk involved, he cited two Raytheon subsidiaries, Pratt & Whitney (P&W) and Collins Aerospace Systems. Both of those companies have connections to the People’s Liberation Army, the core of the Chinese military.
P&W is prominent in the Chinese military marketplace, with offices in Beijing and Shanghai. It provides engines used in around 40% of the civilian helicopters operated in China. It also provides engines used by a company deeply connected to the People’s Liberation Army.
P&W reportedly is involved in joint ventures with Xi’an Aircraft and China Aviation Industry Corporation (AVIC) in China.
AVIC is owned by the Chinese government and has been listed by the Treasury and Commerce Departments as a Chinese military-industrial complex company.
Collins Aerospace Systems has more than a dozen Chinese locations and multiple joint ventures with Chinese firms. Its website says that it has been demonstrating its “commitment to China” for “close to 40 years.” It touts its “strong corporate and personal relationships” built up over three decades.
Bell Trexton is another American military aircraft producer with strong Chinese connections. It has an entire page on its site dedicated to its “China Service Center.” It says that it strives to serve Chinese and regional customers with “maintenance, repair, and overhauling services.”