China counterfeit electronics found in U.S. military aircraft; Senate committee warns of 'ticking time bomb'

As reported by The Washington Post and Bloomberg, dozens of suspected counterfeit electronics parts were revealed to have been installed on U.S. defense equipment from Raytheon, L-3 Communications, and Boeing -- including in aircraft deployed to Afghanistan. The Senate Armed Services Committee said it discovered counterfeit parts, usually originating from China, in at least seven aircraft, including the Lockheed Martin Corp. C-130J transport plane, Boeing P-8A Poseidon maritime patrol and L-3 27J Spartan transport, as well as in helicopter night vision systems and aircraft video display units.

Michigan Senator Carl Levin, the committee's chairman, said that none of the counterfeit findings were connected to instances of lives lost or dramatic failures causing an aircraft crash. Nonetheless, Levin stressed that the committee staff has “identified lots of places where, unless that correction was made, there was real fear that those kind of disastrous consequences could take place.” Company executives, a Defense Department official, government investigators and a representative from the semiconductor industry all testified before the committee about the "ticking time bomb" of suspect counterfeit electronics eventually ending up in weapons systems.

Beijing auto exec: China to line up 10 million EV parking spots

The Chinese government is reportedly looking to prepare at least 10 million parking spots for electric vehicles by 2020 under terms of a comprehensive new policy due to be announced soon, according to sources cited by Reuters.

"The government is working on a plan -- and I think it will be announced very, very soon -- basically calling for having, in 10 years, electric car parks of 10 million (units) or above," said Wang Dazong, president of Beijing Automotive Industry Holding Co (BAIC), at an industry conference concurrent to the recent Detroit auto show.

Consumers can now get incentives worth 120,000 yuan ($18,170) to purchase an electric car in 10 to 20 cities, Wang added. Another industry executive said Beijing is expected to focus its efforts most on pure electric vehicles, as opposed to gasoline-electric hybrids or hydrogen fuel-cell vehicles.

China's Minister of Science and Technology was quoted by state-owned Xinhua news agency in October as saying the country's production of electric vehicles could reach 1 million units by 2020, when many expect a total new-vehicle market of 40 million.

Draka takeover battle turning political

The unfolding takeover battle for Dutch cable maker Draka Holding NV is turning political amid fears that China's ambitions and Europe's tough stance on cartels could undermine European cable makers' competitiveness, as reported in the business pages of The Wall Street Journal.

Worries stem from Chinese company Tianjin Xinmao Science & Technology Investment Group's €1 billion ($1.31 billion) offer to acquire Dutch cable maker Draka. The privately held Xinmao swooped unexpectedly, after Draka had already agreed to be acquired by Italy's Prysmian Spa. The bid also trumped an offer from France's Nexans SA.

Reuters has provided a useful chronology of developments in attempts to acquire the Dutch company.

Here's a round-up of related news links:

Prysmian CFO Facchini Confident of Draka Deal (Bloomberg)

Prysmian would need investor cash to up Draka bid (Reuters)

Prysmian, Draka Defend Deal Against Chinese Counterbid (Wall Street Journal)

Prysmian Won't Raise Draka Bid After Higher Offer From Xinmao (BusinessWeek)