A company executive has been charged with selling chips, which could be used in advanced communications and radar systems, to China.

The charges against William Chai-Wai Tsu, a naturalized U.S. citizen and president of Cheerway Inc.,  were brought in a Federal court in Los Angeles on Monday. He is accused of buying at least 200 chips from a San Jose distributor and illegally shipping them to mainland China. Tsu faces 20 years in prison if convicted of the crime.

Over the past decade, China has made great strides to modernize its armed forces and develop advanced, indigenous weapons systems, including 4.5 generation jet fighters, an array of guided missiles and modern communications and control systems. However, the country's defence industry still heavily relies on foreign technology, and acquires most of its radar, avionics and communication technology from Russia, Israel and Europe.

This fact greatly impairs Chinese ability to export such systems, as the exports can be stopped by foreign suppliers for political or economic reasons.

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