China is holding sensitive F-35 parts diverted to Hong Kong: Sources

• China has taken possession of sensitive F-35 stealth aircraft parts diverted to Hong Kong during shipment from Australia to the US, raising security concerns amid a high-profile state visit.
• The parts, coated with radar-absorbing material and supplied by Lockheed Martin, were unexpectedly rerouted via South Korea and Hong Kong; the reasons for diversion remain unclear.
• US authorities and Congress are investigating the incident, with the Pentagon working to retrieve the parts and prevent future occurrences, highlighting espionage risks and geopolitical tensions.

WASHINGTON/HONG KONG – The Chinese government has taken possession of potentially sensitive F-35 stealth aircraft parts that were inexplicably diverted to Hong Kong while being sent to the US from Australia, people briefed on the incident said.

UPS was shipping a cockpit canopy and weapons-bay door from an Australian military F-35 that was being sent to the US for inspection and possible repair or disposal in late May, according to the people, who asked not to be identified discussing private matters.

Both parts, supplied by Lockheed Martin, were coated with radar-absorbing material that enhances their stealth capabilities, two of the people said. 

The plane stopped in South Korea en route to the US and from there, it was routed to Hong Kong, said one of the sources.

It is not clear why the plane stopped in South Korea or why it was diverted to Hong Kong, or whether the parts were intentionally diverted or by mistake. 

The Chinese government later took possession of the parts but so far has not returned them, two of the people said.

A Chinese embassy spokesman declined immediate comment on Sept 24.

Disclosure of the incident comes at a politically sensitive time for the two countries, with Chinese President Xi Jinping arriving in the US on the evening of Sept 23 for a state visit hosted by President Donald Trump.

At least two congressional committees are investigating how the parts fell into Chinese hands.

China’s possession of the parts, the stop in South Korea and the fact that UPS was used to transport them had not been previously reported.

Politico reported earlier that the parts had been unexpectedly diverted to Hong Kong. 

“The juxtaposition is hard to miss,” Senator Elissa Slotkin, a Michigan Democrat, said on Bloomberg Television. “The Chinese are holding some of our most sensitive technology and we are rolling out the red carpet for their president.”

Slotkin said she had not received a briefing on the issue.

“When it comes to intelligence and military issues, China is a competitor and an adversary. They are always seeking information about our military equipment; sensitive information.”

China has for years targeted the F-35 in its espionage efforts.

Concerns that China could learn valuable intelligence about the jet were one reason why a US bid to sell F-35s to the United Arab Emirates, announced in Trump’s first term, later collapsed.

Members of Congress have also raised concerns that plans to sell the F-35 to Saudi Arabia could risk exposing cutting-edge US military technology to China.

The Pentagon said it was working to retrieve the parts.

Officials are aware of “a shipment issue of unserviceable F-35 components”, a statement from the Pentagon said.

“We are actively working with US authorities and industry partners to retrieve these components, investigate the incident and place safeguards to avoid a future occurrence.”

The F-35 is one of the world’s most advanced fighter jets and some 20 countries have purchased the aircraft, including South Korea, Japan, Singapore and Australia. It has flown numerous missions against Iran.

Australia is the Indo-Pacific inventory hub for parts and maintenance of F-35s flown by allies in Asia.

“It’s always best when your adversaries have to guess at your capabilities,” said J.J. Gertler, a former aviation analyst for the Congressional Research Service who is now director of The Defence Concepts Organization. “You never want to hand them evidence.”

UPS disclosed the incident to the State Department’s Directorate of Defence Trade Controls, which enforces export control laws, out of an abundance of caution.

Company spokesman Malcolm Berkley declined to comment.

Australian Defence Minister Richard Marles told reporters on Sept 22 that his country is examining “everything that has occurred at the Australian end”. “The point I would make here is that we are confident about the way in which we’ve engaged with the programme and through the US’ prime contractor, Lockheed.”

Lockheed Martin said in a statement that the US Department of Defense picked the transportation options and “we select the carrier that aligns with those government-mandated parameters”. 

Lockheed Martin did not disclose which carrier shipped the parts but said the company is working closely with it “to develop and implement preventive measures to strengthen our collective oversight and prevent recurrence”.

During a closed Senate Armed Services Committee F-35 hearing on June 23, Defense Department officials expressed their hope that the components would be returned, according to people familiar with the exchange.

The diversion is being reviewed by two House congressional panels – House Foreign Affairs and Armed Services. Armed Services Committee spokesperson Heather Vaughan said the “committee is aware of this issue and we’ve received multiple briefings on it”.  

The Senate Armed Services air-land sub-committee also “is aware of the reports and is currently looking into the matter”, said spokesman Dave Vasquez. BLOOMBERG