In two separate cases, between August 2012 and the spring of 2013, US undercover

agents captured Chinese nationals in the act of attempting unlicensed exports of samples

of military-grade carbon fiber from the US to confederates in China. In both cases, the

Chinese men:

 

• tried to purchase multiple tons of the super-hard, heat resistant materials

manufactured by Toray Composites of America, a subsidiary of Tokyo-based

Toray Industries, Inc.;

• first encountered the US agents on internet sites devoted to the brokering,

purchase and sale of controlled commodities, on which the agents maintained

“cover cyber-presences”;

• knew – because they were told by the undercover agents – that the materials they

sought could not be exported without Department of Commerce licenses; and

• traveled to the US to deal directly with the US agents, conveniently allowing

themselves to be arrested before they could return to China.

 

What do these cases suggest?

• Composite materials manufactured by Toray are (i) highly prized by Chinese

aerospace companies, but (ii) apparently unavailable from Toray Japan – so

Japanese export controls appear to be working, at least where carbon fiber is

concerned.

• US agents are trolling internet marketing sites for suspicious purchasing activities

and using sophisticated technology on their fishing trips – indeed, the agents’

interest in one of the Chinese buyers was piqued when a review of internet

protocol log-in information revealed that the buyer was communicating from

China.

• The ancient wisdom of China’s I Ching to the contrary, persistence does not

always further: Both of the Chinese men became directly involved with US

agents only after being told that their wonted products could not be exported

without a license, apparently believing that they could talk their way around the

law.