American aerospace giant Boeing has reached a settlement agreement with the U.S. State Department, resolving allegations of export control violations for $51 million. These violations centered around the unauthorized download of sensitive documents related to U.S. Defense Department programs by Chinese employees of Boeing working in China.
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The settlement comes after Boeing voluntarily disclosed the violations, which primarily occurred before 2020. The investigation conducted by the State Department did not find any evidence of classified information being compromised.
In a statement, the State Department acknowledged Boeing's cooperation throughout the investigation and commended the company's efforts to strengthen its export control compliance program since the incidents took place. The settlement includes a three-year consent agreement, requiring Boeing to maintain specific compliance standards. Additionally, while the total penalty amounts to $51 million, the State Department will suspend $24 million, allowing Boeing to invest those funds in further enhancements to its compliance program.
This settlement signifies the latest chapter in a series of challenges faced by Boeing in recent years. While the company did not admit any wrongdoing as part of the agreement, the incident underscores the importance of robust export control measures within the aerospace industry, particularly regarding sensitive information related to defense projects.