Aug 15 (Reuters) - Global electronics company TE
Connectivity ( TEL ) has agreed to pay $5.8 million to settle with the
U.S. Department of Commerce for illegally shipping items to
parties tied to Chinese hypersonics, drone and military
electronics programs.
TE Connectivity ( TEL ) violated U.S. export control laws 79 times
between 2015 and 2019, mostly by shipping wires, circuit-board
connectors and other low-level items to restricted customers,
the Commerce Department said in a statement on Thursday.
The U.S. imposed sweeping export controls on U.S. technology
and added hundreds of Chinese parties to its export control list
in recent years to limit China's ability to strengthen its
military in ways that threaten U.S. national security.
Switzerland-based TE Connectivity ( TEL ), the Pennsylvania and Hong
Kong units of which were named in the settlement agreement,
voluntarily disclosed violations of those controls to the
Commerce Department's Bureau of Industry and Security (BIS)
after they discovered them, the department and company said.
The department's investigation found TE exported $1.74
million worth of items to Chinese parties on its restricted
"Entity List," among other violations. Company representatives
in China concealed and disguised certain customers, such as
state-owned military corporations, the department said.
"Today's penalty takes into account both the cooperation of
TE Connectivity ( TEL ) in disclosing violations to us and the
seriousness with which we act when a company permits China's
destabilizing military modernization programs to benefit from
U.S. technology," Commerce official Matthew Axelrod said in the
statement.
"We have fully cooperated with BIS and are pleased to have
reached a settlement in this matter," a TE Connectivity ( TEL )
spokesman said in a statement. "We have a strong commitment to
compliance with trade laws."