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28 Feb, 2025
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US businessman pleads guilty to trying to export sensitive tech to China without a licence
@Source: scmp.com
The owner of a North Carolina-based electronics resale business has pleaded guilty to attempting to export sensitive technology with military applications to China without a licence, the US Justice Department said on Friday. David C. Bohmerwald, whose Components Cooper Inc. operates in Raleigh, admitted to violating the Export Control Reform Act (ECRA) by trying to ship 100 accelerometers to a company in China. “When used for military applications, accelerometers are crucial to structural testing, monitoring, flight control and navigation systems,” the Justice Department said in a statement. “The technology can help missiles fly better and measure the precise effect munitions have on structures. A license is required to export the accelerometers to China,” it added. The ECRA gives Washington sweeping powers to restrict the flow of sensitive tech that could compromise national security. When Bohmerwald bought the accelerometers, he claimed they were for an end user in Missouri, the Justice Department said. But when federal agents contacted the Missouri company, it denied having an order pending with him or his business. Bohmerwald, who also falsely declared the package’s value as US$100 when its true worth was nearly US$20,000, admitted to knowing the technology was export-controlled and that a licence was required. An agent from the Department of Commerce’s Bureau of Industry and Security intercepted the accelerometers at a FedEx shipping centre. The investigation was coordinated by the “disruptive technology strike force”, a joint initiative by the Justice and Commerce departments to prevent the unauthorised transfer of sensitive US technology to foreign adversaries. The case comes amid an escalating US-China tech rivalry as Washington seeks to curb Beijing’s access to advanced technologies that could enhance its military capabilities. The US has introduced far-reaching restrictions on the export of semiconductor technologies, including manufacturing equipment and AI-related chips, citing concerns about Chinese surveillance, cyber warfare and defence applications. A report published last week by the Centre for Strategic and International Studies (CSIS), a Washington-based think tank, highlighted the growing impact of these controls and their flaws. It found that while US restrictions have significantly limited China’s access to high-end semiconductor technology, they have also spurred Beijing to accelerate its domestic chip development and reduce reliance on American firms. The CSIS report said China has responded to the restrictions by boosting state-backed investments in semiconductor self-sufficiency, forming strategic partnerships with non-US suppliers and using alternative markets to acquire restricted technologies. Enforcement is a challenge for the US, according to the authors, who said China exploits loopholes in the regulatory framework and relies on middlemen and front companies to circumvent controls. Chinese companies have proved exceptionally adept at circumventing Western export controls, with “many ways to dodge export controls, such as third-party partners, offshore entities or other shell companies”, the report continued. In some cases, “parts are simply snuck across borders” such as by attaching extra chips to printed circuit boards, it added. Prosecutors from the Justice Department’s national security division and a US attorney’s office in North Carolina are handling Bohmerwald’s case. He is expected to be sentenced before the end of the year and could get a maximum sentence of 20 years in prison. The Chinese embassy in Washington did not immediately respond to a request for comment.
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