US Contractor Pleads Guilty to Helping China Build Attack Helicopter

Posted June 28th, 2012 at 7:30 pm (UTC-5)
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A subsidiary of U.S. defense contractor United Technologies Corporation, or UTC, pleaded guilty Thursday to criminal charges of selling China hardware to help it build a military attack helicopter.

The Justice Department charged UTC's Canadian subsidiary, Pratt & Whitney Canada, with selling China hardware for its Z-10 attack helicopter, violating the Arms Export Control Act.

United Technologies, its U.S.-based subsidiary Hamilton Sundstrand Corporation, and Pratt & Whitney Canada agreed to pay more than $75 million as part of a settlement to the U.S. government.

Part of the fine was for making false statements to U.S. officials. The contractors said they thought they were helping China build a civilian helicopter.

The United States has barred companies from selling military equipment to China since the 1989 Tiananmen Square killing of pro-democracy demonstrators.