The U.S Senate’s Armed Forces Committee has released the findings of its investigation, and they are of serious concern to Senators. It has been discovered that American planes, ships and even missiles are equipped with fake Chinese made chips.
It is believed that the number of fake parts in American military hardware could be more than a million. Senators say that it is the tip of an iceberg since the Armed Forces Committee investigated only a part of the imports. Thousands of U.S military planes and ships are being operated with forged Chinese electronics which have been fitted on the C -17 transport plane, Lockheed Martin C-130 Super Hercules, on Sea Knight helicopters, and even on anti-missile systems.
7 out of 10 forged items come directly from China, 20 per cent come from Canada and Britain, the two countries which serve as bases for the resale of Chinese counterfeits. Photographs of an electronics market in Shenzheng were produced at the hearings, showing cartons and boxes filled with micro chips. The locals cleaned the damaged and old parts in the river, dried them in the sun, and then sold them to retailers. Such chips can pass factory tests, but according to experts, the parts which are intended for use in military hardware should be able to withstand high temperature and moisture, which are the the qualities that fake chips lack, says Evgeny Yushuk, an expert in competition surveillance, speaking in an interview given to the VOR.
“Genuine products are subjected to rigorous testing, especially if they are intended for military use. The high prices for such items are dictated by both the cost of their development and the large amount of waste due to defects. The cost of quality assurance testing also contributes to the final price. So when counterfeit parts are used, it's like the game of Russian Roulette - they could work or they could fail. "If a fake part is fitted on a plane, it could accidentally drop a bomb, so the consequences could be dire” Evgeny Yushuk said. "They have already lost around 50 of those, judging by what has been said in the media".
The problem which is being discussed in the Senate is not a new one. In the 1990s, the administration of the former U.S President Bill Clinton asked the Pentagon to reduce spending and to halt the production of electronic components at U.S enterprises. Instead, the Pentagon started buying them "off the shelf". When China became the world’s leading electronics producer, the shops's shelves became inundated with Chinese products.
U.S Senators demanded that the Chinese close down their black electronics market, and even the Chinese Ambassador to the U.S was invited to the hearings, but he diplomatically declined the invitation 'due to other arrangements'. But it is the Pentagon, and not China, who is to blame for the situation. The Pentagon decided to save money on these parts and bought the cheap stuff, says Pavel Kamennov, an expert at the Institute for the Far East.
“The U.S Defense Ministry decided to look for cheap components because of the economic crisis in America. As we know, Chinese parts are always cheaper. But I have no information as to whether they are actually worse [than the others'] because China always looks for ways to enhance its science and technology”, argues Kamennov.
Commenting on the allegations made by the U.S, Chinese experts say they lack foundation, and argue that the situation is merely a reflection of the rules of free trade.
The only solution for the U.S now is to buy components from Korea and Japan, but they will not come cheap.
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