Washington (Business Emerge), August 17: TE Connectivity, a global electronics giant, has reached a $5.8 million settlement with the U.S. Department of Commerce after it was found to have violated export control laws. The violations involved the illegal shipment of wires, circuit-board connectors, and other items to entities associated with China’s hypersonics, drone, and military electronics initiatives between 2015 and 2019.
The U.S. has significantly tightened export controls on technology, especially targeting Chinese entities, to prevent advancements in China’s military capabilities that could pose a threat to national security. TE Connectivity, headquartered in Switzerland with key operations in Pennsylvania and Hong Kong, was implicated after voluntarily disclosing the infractions to the Department of Commerce’s Bureau of Industry and Security (BIS).
An investigation revealed that TE Connectivity exported $1.74 million worth of items to parties listed on the U.S. government’s restricted “Entity List.” The company’s representatives in China were found to have concealed and misrepresented the identities of certain customers, including state-owned military corporations. These actions constituted 79 separate violations of U.S. export control laws.
The settlement acknowledges TE Connectivity’s cooperation with the investigation, yet also underscores the gravity of allowing U.S. technology to support China’s military modernization efforts. Matthew Axelrod, a Commerce official, emphasized the importance of holding companies accountable when they enable the enhancement of foreign military capabilities through U.S. technology.
A spokesperson for TE Connectivity stated, “We have fully cooperated with BIS throughout this process and are pleased to have resolved the matter. Our commitment to compliance with trade regulations remains strong.”