CEO convicted of exporting U.S. Technology

CEO convicted of exporting U.S. TechnologyA U.S. federal district court sentenced Wu Zhenzhou, a Harvard MA graduate also the founder and CEO of  Shenzhen based Chitron Electronics to eight years in prison for the crimes of exporting parts found in the U.S. Munitions List and restricted sensitive technology to China over the span of ten years.

Wu was arrested December 5, 2008 at the Chicago’s O’Hare and is currently convicted of conspiring to illegally export American munitions and technology, and ordered to pay fines of US$15,000, US$1,700 in special assessment and US$65,000 in forfeitures. Wu ex-wife Wei and company manager Li Bo was also arrested on the same day.

Chitron Electronics have a U.S. office in Waltham. According to U.S. Attorney Carmen Ortiz, Wu used his company to acquire and ship military electronics and restricted equipment to China. The equipment were used in electronic warfare, military radar, fire controls, missile systems, satellite communications, and military guidance and control equipment. Wu and his ex-wife Wei were charged for violating U.S. export laws and illegally exporting defense articles and commerce controlled electronics as well as falsifying shipping documents from the U.S. Commerce Department.

Wu believed he is innocent and ignorant of the listed parts, and he doesn’t care on what the prosecutors say and what the jury will decide. An attorney with Smith & Duggan LLP in Boston said that the vague U.S. export controls regulations had put Wu in an disadvantage. As  exports of certain components are governed by two interconnected and conflicting regulations issued by the U.S. State Department and U.S. Commerce Department. The controls regulations is a secret law which is only taken out during criminal trials.

A Global Times reporter visited Wu at the Wyatt Detention Facility on May 9, where Wu said he did not care what the prosecutors had said or what the jury would decide because he believed he was innocent and insisted he was ignorant of the listed parts.

The case shows regulations on U.S. exports of these types of high tech products to China is loose, but in fact its tightening thus showing the hostility of conservatives in the U.S. government towards China.

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