China Is Holding Sensitive F-35 Parts Diverted to Hong Kong

(Bloomberg) -- 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 Corp., 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 people. It's 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 hasn't returned them, two of the people said. A Chinese embassy spokesman declined immediate comment on Thursday.

Disclosure of the incident comes at a politically sensitive time for the two countries, with Chinese President Xi Jinping set to arrive in the US later Wednesday for a state visit with 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.

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. 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," a statement from the Pentagon said.