American Renaissance

Two Charged in China Illegal Export Case

Mike Schneider, AP, Mar. 16

ORLANDO, Fla. — Two men have been indicted by a federal grand jury on charges of illegally exporting sensitive technology to China that can be used in missile guidance systems.

The men ignored a law requiring permission from the Department of Commerce before they exported 25 low-noise amplifier chips used in U.S. military aviation radar systems, according to an indictment made public Tuesday.

Ting-Ih Hsu, a naturalized U.S. citizen and president of Azure Systems Inc. and Atlantic & Pacific ICS Inc., and Hai Lin Nee, a Chinese citizen who worked for both companies, were charged with attempting to violate the Export Control Act, conspiracy and making false statements.

The indictment alleges the two never obtained the required export license for the chips, which also have civilian uses. Instead, the indictment says that in shipping declarations filed with the government the two men listed the chips as “transistors” worth only $20.

U.S. Immigration and Customs Enforcement agents arrested the two men Friday. Hsu, a former employee of defense contractor Lockheed Martin, was released after posting $10,000 bond, while Nee remained in custody pending an immigration hearing.

If convicted, each man could face up to five years in prison for each count.

Hsu planned to plead not guilty, said his attorney, Thomas Dale. The attorney said he couldn’t comment further, and Hsu’s home phone number was disconnected.

An attorney for Nee did not return a phone call, and no one answered a call to Nee’s home.

The number of arrests by ICE agents in similar cases rose in 2003 to 124 compared with 62 the year before. ICE opened about 2,000 investigations last year into illegal exports of sensitive technology, officials said.