Chen admitted to attempting to purchase military-grade satellite modems and radios manufactured for the U.S. military by American companies . These specific communications hardware items are on the U.S. Munitions List and cannot be legally exported from the United States without a license from the Department of State's Directorate of Defense Trade Controls, which generally does not issue licenses to export military goods and services to China .
According to the Department of Justice, Chen collaborated with co-conspirators in China to acquire the systems through black-market channels . The group discussed several smuggling routes, initially considering Switzerland, then discussing receiving the equipment in Saipan (Northern Mariana Islands), and ultimately deciding to attempt to smuggle the hardware through Mexico . To evade detection, Chen and his co-conspirators used encrypted messaging applications and cryptocurrency .
Court records indicate that Chen, working with individuals in China, entered into a contract with the U.S. subsidiary of a Swiss defense company to purchase 10 satellite modems . The equipment included communications systems manufactured by major U.S. defense contractors such as L3Harris, Viasat, and Comtech . These devices are subject to strict export controls under the International Traffic in Arms Regulations (ITAR), and U.S. policy sets a "presumption of denial" for export licenses to China .
Chen was arrested on October 6, 2025, in Saipan . The case was subsequently transferred to the U.S. District Court for the District of Utah in Salt Lake City for prosecution . He was charged with a single count of violating the Arms Export Control Act .
In a statement announcing the guilty plea, Assistant Attorney General for National Security John A. Eisenberg said, "Chen attempted to divert sensitive U.S. military technology to the People's Republic of China, technology that the PRC could one day use against us. These advanced technologies are the product of American ingenuity and investment, and the National Security Division will work with our partners across the government to protect the military advantage these technologies confer" . Prosecutors noted that the equipment could pose future risks to U.S. security .
The case highlights ongoing U.S. efforts to prevent the unauthorized transfer of sensitive military technology to strategic rivals. The U.S. maintains strict export controls on military-grade hardware, and violations of the Arms Export Control Act carry severe penalties, including lengthy prison sentences.
Chen admitted to attempting to purchase military-grade satellite modems and radios manufactured for the U.S. military by American companies . These specific communications hardware items are on the U.S. Munitions List and cannot be legally exported from the United States without a license from the Department of State's Directorate of Defense Trade Controls, which generally does not issue licenses to export military goods and services to China .
According to the Department of Justice, Chen collaborated with co-conspirators in China to acquire the systems through black-market channels . The group discussed several smuggling routes, initially considering Switzerland, then discussing receiving the equipment in Saipan (Northern Mariana Islands), and ultimately deciding to attempt to smuggle the hardware through Mexico . To evade detection, Chen and his co-conspirators used encrypted messaging applications and cryptocurrency .
Court records indicate that Chen, working with individuals in China, entered into a contract with the U.S. subsidiary of a Swiss defense company to purchase 10 satellite modems . The equipment included communications systems manufactured by major U.S. defense contractors such as L3Harris, Viasat, and Comtech . These devices are subject to strict export controls under the International Traffic in Arms Regulations (ITAR), and U.S. policy sets a "presumption of denial" for export licenses to China .
Chen was arrested on October 6, 2025, in Saipan . The case was subsequently transferred to the U.S. District Court for the District of Utah in Salt Lake City for prosecution . He was charged with a single count of violating the Arms Export Control Act .
In a statement announcing the guilty plea, Assistant Attorney General for National Security John A. Eisenberg said, "Chen attempted to divert sensitive U.S. military technology to the People's Republic of China, technology that the PRC could one day use against us. These advanced technologies are the product of American ingenuity and investment, and the National Security Division will work with our partners across the government to protect the military advantage these technologies confer" . Prosecutors noted that the equipment could pose future risks to U.S. security .
The case highlights ongoing U.S. efforts to prevent the unauthorized transfer of sensitive military technology to strategic rivals. The U.S. maintains strict export controls on military-grade hardware, and violations of the Arms Export Control Act carry severe penalties, including lengthy prison sentences.