SEC probes Boeing deal with China-linked satellite project

Published 1:30 am Monday, January 14, 2019

By Edvard Pettersson / Bloomberg News

The U.S. Securities and Exchange Commission is looking into Boeing’s relationship with a California satellite-communications startup that allegedly is controlled by the Chinese government.

Global IP’s founders are suing a group of Chinese companies and individuals for allegedly taking control of their company through fraud. A December letter from the SEC was filed in the Los Angeles court case this month requesting that El Segundo-based Global IP preserve documents and data relevant to the agency’s investigation.

The Commerce Department’s Bureau of Industry and Security has revoked Boeing’s export license for a satellite and Boeing has canceled its contract to build it, according to the court filing.

The Wall Street Journal reported last month that the project, which includes restricted technology, was funded with $200 million in Chinese government money, prompting Sen. Robert Menendez, D-N.J., to ask the Treasury and Commerce departments to review the transaction.

The satellite was intended to provide high-speed internet access to parts of Africa.

With assistance from Bloomberg’s Julie Johnsson.