Commerce Department Takes Action on 3 Firms Caught Sending US Trade Secrets to China

Commerce Department Takes Action on 3 Firms Caught Sending US Trade Secrets to China

Agents CATCH THESE 3 US Firms Sending Secrets To China!

( – In early 2020, the US Commerce Department (DOC) received an alert from an unnamed aerospace and defense technology company that Quicksilver Mfg, Inc. committed a violation by sending controlled satellite technology to a company based in the People’s Republic of China (PRC). Two years later, the DOC took action against Quicksilver and two other US firms for sending trade secrets to the PRC.

On June 7, Matthew Axelrod, the DOC’s Asst. Secretary for Export Enforcement issued a 180-day temporary order suspending Quicksilver’s export privilege as well as those of US Prototype, Inc. and Rapid Cut, LLC.

The three companies share the same Willmington, North Carolina, mailbox and allegedly sent blueprints and technical drawings to the PRC for 3D printing. The renderings involved rocket, satellite, and defense-related prototypes.

The DOC’s Bureau of Industry and Security issued a press release the following day announcing the denial order and explaining Axelrod’s rationale for taking action against the three companies. As he explained, “the companies may have saved a few bucks,” but they did so at the risk of harming national security by revealing US military technology to a foreign adversary.

The press release noted the allegations against the three companies remain under investigation. It also said the companies’ space and defense industry clients should review their records to determine if any other export-controlled technology was shared with the PRC or otherwise compromised.

The DOC can extend the export suspension at the end of the 180 days, and the companies could face administrative and criminal sanctions depending on the outcome of the investigation.

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