The State Department declined a request by Loral Space & Communications to lift a ban on the company's technical assistance to a satellite project in China. However, the Department said this decision did not have broader implications for U.S. aerospace companies operating in China.

The government suspended Loral's role in launching the China Sat-8 satellite last December amid concerns that China had gained militarily useful knowledge from the company during previous projects. Loral has denied that it transferred any sensitive data or violated any laws.

State Department spokesman James Rubin stated in a press briefing on Wednesday that the suspension will continue because the concerns that led to its imposition "have not been alleviated." He declined to discuss specifics.

The company remains hopeful that the ban will be lifted in the future, according to Loral spokesman Mac Jeffery. The decision "simply means that the situation remains unchanged, and we're waiting and hoping for the best," says Jeffery.

China Sat-8 is a U.S.-built satellite that would be launched aboard a Chinese rocket.

At the State Department briefing, Rubin said that the "outcome of this matter does not have broader implications for launching American-manufactured satellites from China. It is not a test of the aerospace industry's ability to do business in China."

Rubin noted that the Department has authorized other recent American aerospace projects in China, including the launch of an Iridium satellite in June.