Boeing attempts to sidestep U.S. regulations, sell satellite tech to China

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Brian Spegele & Kate O'Keeffe  /  The Wall Street Journal

Boeing Co. said Thursday it was canceling a controversial satellite order that was financed by a Chinese government-owned firm, citing “default for nonpayment.”

Boeing’s decision follows a Wall Street Journal investigation this week that highlighted China’s opaque role in funneling around $200 million to the project, called Global IP.

Under U.S. export-control laws, Boeing isn’t allowed to sell satellites to China directly.

Boeing faced criticism after the article’s publication that it attempted to sidestep U.S. regulations of sensitive satellite technology, which the U.S. military relies on.