In a move likely to increase uncertainty within the aerospace industry over the legal and political implications of doing business with China, the U.S. government indicted Boeing subsidiary McDonnell Douglas Tuesday on charges of making false statements about exports of machine tools to China.
U.S. officials have been increasingly concerned in recent years about possible transfers of militarily related aerospace technology to China. Among the projects that have come under scrutiny are China-based launches of satellites owned by Loral and Hughes.
The U.S. Attorney's Office for the District of Columbia handed down the 16-count indictment, which charges that McDonnell Douglas sought to conceal the use of its machine tools to build military aircraft parts. Boeing, which now owns McDonnell Douglas, issued a statement denying its subsidiary had committed any criminal violations.