China Holds F-35 Stealth Parts Diverted to Hong Kong by UPS
China has taken possession of F-35 stealth parts, including a cockpit canopy and weapons-bay door, that were diverted to Hong Kong via UPS from Australia. Watch LMT and UPS for fallout.
The Chinese government has taken possession of potentially sensitive F-35 stealth aircraft parts that were diverted to Hong Kong while being shipped from Australia to the US, according to people briefed on the incident. The parts were routed through UPS and never made it to their intended US destination.
What was in the shipment
UPS was shipping a cockpit canopy and weapons-bay door from an Australian military F-35 that was being sent to the US for inspection and possible repair or disposal in late May. Both parts were coated with a radar absorbing material that enhances their stealth capabilities, and it was not clear why the shipment was diverted to Hong Kong.
The canopy is not just a transparent covering that protects the pilot, but a key component of the F-35’s stealth envelope. It is coated with a thin, transparent layer of radar-absorbing material that helps reduce the aircraft’s signature and hide it from enemy radar systems.
Why Hong Kong matters
The shipment’s unexpected diversion to Hong Kong would have brought it under Beijing’s command, which has in recent years kept a tight hold on Hong Kong. There are strict national security laws that allow Chinese authorities to influence Hong Kong’s political system and crack down on dissent.
Chinese access to spare parts like the cockpit canopy could be used by China to improve their capabilities, either allowing them to put similar improvements on their own aircraft, or to find countermeasures against the RAM and thus make the F-35s more detectable. Doing so could compromise the F-35’s stealth characteristics for all the aircraft’s partner nations, making this more than just an issue for the U.S.
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Washington and Canberra respond
Australian Defense Minister Richard Marles told reporters that Australia was aware of the shipment, and was working with the U.S. and Lockheed Martin to see how Canberra can assist in the investigation. Marles also said it was his understanding that no sensitive parts were in the missing shipment.
The incident has sparked a series of briefings for congressional staff on key national security committees as it investigates the diversion. State Department and Pentagon officials briefed congressional staff in June, with multiple additional briefings expected in the coming weeks.
The Saudi angle
A $24 billion sale of F-35s to Saudi Arabia was approved last week, but some lawmakers in Congress have already expressed concerns over the technology finding its way into Chinese hands. The Hong Kong diversion will add fuel to those concerns as lawmakers weigh export controls tied to the program.
Options market and stocks to watch
Watch LMT, the F-35 manufacturer, for headline risk if the investigation expands into supply-chain accountability. An intermediary was transporting the parts on behalf of F-35 manufacturer Lockheed Martin.
Watch UPS as the carrier at the center of the diversion. Any regulatory or contract review of defense shipping arrangements could hit sentiment.
Watch defense peers NOC, RTX, and BA for spillover if Congress tightens ITAR-style export controls across the sector. For more, see other news.
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