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On the battlefield, defective parts can cost soldiers' lives. Reportedly 40 percent of the U.S. supply chain is damaged by counterfeit or defective parts, mostly from China.  (Source: Defense Talk)

Using China-manufactured hardware could also offer a convenient route for espionage on core U.S. systems. The DOD continues to use Chinese parts, though because they're cheap.  (Source: Military Factory)

China is blocking U.S. inspectors from entering Shenzhen, a manufacturing metropolis that is suspected as a source of many of the counterfeit parts.  (Source: Beijing Torch Relay)

Sen. Scott Brown (R-Mass.) says not to wholly blame the Chinese, but to look at our own nation's decisions as well. He states, "It's easy to blame the Chinese for this. Just like it's easy to blame the Chinese for taking our jobs and shutting down American manufacturing plants. But we're letting this happen. And the Department of Defense needs to pay way more attention to its whole supply chain."  (Source: AP Photo)
Fake parts are compromising national security, costing Americans jobs

The U.S. Government Accountability Office (GAO), the audit, evaluation, and investigative arm of the U.S. Congress has been busy investigating reports of fake and/or damaged parts in the U.S. supply chain.  It has released its preliminary findings [press release] and they may come as a shock to some -- though perhaps not so much for others.

I. A Huge Problem

The GAO claims that 40 percent of the U.S. Department of Defense's supply chain is adversely impacted by fake or defective parts.  From missiles, to rifles, to vehicles, problems abound.  The common thread, says the GAO, is that virtually all the suspect parts originated from contractors in China.

The U.S. Immigration and Customs Enforcement (ICE) agency in 2010 seized 19,959 loads of suspected counterfeit parts and materials valued at approximately $1.4B USD.  That's a 39 percent rise from 2009.  ICE also reports dealing with 2,000 intellectual property abuse claims last year, which resulted 365 arrests, 216 indictments and 170 convictions.

The Defense Criminal Investigative Service (DCIS), under the auspice of the Defense Department Inspector, has its hands full as well.  It is currently actively probing 45 reports of counterfeit parts and 200 allegations of substandard or non-conforming parts.

As mentioned, most of these parts come from China.

Particularly troublesome are reports of counterfeit computer chips.  Deputy Defense Secretary Bill Lynn admitted to the magazine Foreign Affairs last year that, "[A]lready, counterfeit hardware has been detected in systems that the DOD has procured."

The report is troubling as it not only endangers national security through failures, but could be a possible route to espionage attempts as well.

The GAO report describes counterfeit seatbelt clasps delivered for Army vehicles, fake computer routers delivered to the Navy, and Air Force microprocessors that were also counterfeit.

The DCIS investigation head James Ives cited an incident in which a Texan in January 2010 was found guilty of selling counterfeit Cisco Systems Inc. (CSCO) "Gigabit Interface Converters" to the Marine Corps for use in Iraq.  Bought from a Hong Kong-based Chinese vendor, the contractor obtained the systems for $25 USD a piece and resold 200 of them to the Marines for $595 a piece -- for a total of $114,000 USD in profit before applicable taxes.

II. Life and Death

In the field of defense small changes can make the difference between life and death.  While the failure of a graphics card or a smart phone due to subpar counterfeit parts might be disappointing, the failure of a jet fighter CPU or a soldier's machine gun could be deadly.

Over the last couple decades U.S. companies have increasingly turned to China to provide for their supply chain.  It's hard to resist -- the Chinese offer cheaper labor, parts, and assembly than anywhere else in the world and their workers are moderately skilled.

However, there are serious problems from a culture of corruption and corner cutting with the Asian giant.  In July 2007 China executed the nation's former top drug regulator after he was found taking bribes to allow counterfeit products that resulted in deaths.  The U.S. has experienced this problem first hand, in recalls of children's toys that were found to contain toxic levels of brain-damaging lead.  

And most recently China's high speed train efforts were derailed when they found contractors to be using substandard materials and dangerous cheap fillers.  As a result, China was forced to slow its world-leading trains to a pace slower than its foreign competitors.

All of these are telltale signs of a bigger problems looming over the Chinese manufacturing agency.  Chinese labor may be cheap.  But it's prone to espionage, defects, counterfeiting, and substandard materials.

Ultimate the U.S. Department of Defense has a budget to maintain, though, and at the end of the day it's made the same decision many U.S. companies have -- take the risk of using Chinese parts.

III. China Refuses to Cooperate with GAO

According to the GAO report, most of the counterfeit parts are coming from Shenzhen, a major manufacturing center in China's sea-facing southern Guangdong province.  

Some may recognize Shenzhen as the home of Hon Hai Precision Industry Co Ltd. (2317) subsidiary Foxconn's massive "city" plant where over 200,000 employees toil assembling products for Apple Inc. (AAPL) and other manufacturers.  The plant gained international attention last year after a string of suicides [1][2][3] highlighted poor working conditions at the company's Chinese plant [1][2].

The GAO has sent inspectors to investigate in Shenzhen.  However, they've met a roadblock -- the Chinese government learned of this plan and moved to block the investigators' effort to gain visas.  The Chinese government demanded the U.S. inspectors postpone their trip.

U.S. Senator Scott Brown (R-Mass.), a member of the Senate Armed Services Committee and former National Guard Member, blasted the decision in an interview [video] with CNN.  But he puts most of the blame on the American government and the DOD for allowing this behavior.

He states, "It's easy to blame the Chinese for this. Just like it's easy to blame the Chinese for taking our jobs and shutting down American manufacturing plants. But we're letting this happen. And the Department of Defense needs to pay way more attention to its whole supply chain."

He says that the cost cutting not only costs "America's jobs", but also "national security", as well.

"If we're using American taxpayer dollars to buy these goods, you better make sure they're American made, you better make sure they're safe, you better make sure you're doing this right," he opines, "If not, you're not contracting with us any more."

Unfortunately Sen. Brown's rhetoric seems far from the DOD's real world daily actions.


Comments     Threshold


This article is over a month old, voting and posting comments is disabled

I do like...
By DigitalFreak on 6/17/2011 2:20:21 PM , Rating: 5
I do like the fact that Chinese factory owners can be put to death for knowingly adding hazardous chemicals to food, etc.




RE: I do like...
By Motoman on 6/17/2011 2:44:55 PM , Rating: 5
Well, to be fair, any Chinese citizen can be put to death for...well, whatever.


RE: I do like...
By The0ne on 6/17/11, Rating: 0
RE: I do like...
By MrBlastman on 6/17/2011 3:30:15 PM , Rating: 5
The scary thing is that same US citizen could be put to death themselves for "letting" their bike get stolen if they crossed the wrong government official while there. The rule of law is broken in that country. That is what is extra alarming.


RE: I do like...
By nafhan on 6/17/2011 3:41:18 PM , Rating: 2
And race is definitely the motivation behind all that. Good thing you pointed it out...

Has anyone else read about the problems with lead poisoning that have been going on lately in China? Potentially hundreds of thousands of kids with lead poisoning - that's much sadder than the inconvenience to our defense supply chain.


RE: I do like...
By The0ne on 6/17/11, Rating: 0
RE: I do like...
By YashBudini on 6/17/2011 7:33:07 PM , Rating: 2
quote:
Has anyone else read about the problems with lead poisoning that have been going on lately in China? Potentially hundreds of thousands of kids with lead poisoning - that's much sadder than the inconvenience to our defense supply chain.

The government is delaying any law enforcement until such toy companies are too big to fail. They they will give them money for larger bonuses at zero interest.


RE: I do like...
By YashBudini on 6/17/2011 7:27:55 PM , Rating: 2
quote:
The downside is it's all because of government control and through fear.

Am I glad I live in a country that doesn't do that.

</looking over my shoulder>


RE: I do like...
By Justin Case on 6/17/2011 5:00:54 PM , Rating: 2
quote:
any Chinese citizen can be put to death for...well, whatever.

Any American citizen (or Chinese citizen, for that matter) can be taken to Guantanamo, tortured and killed for less than "whatever".

The Chinese legal system isn't random. The crimes for which the death penalty can be applied are well defined, and stealing a bike isn't one of them.


RE: I do like...
By Reclaimer77 on 6/17/2011 5:12:50 PM , Rating: 2
quote:
Any American citizen (or Chinese citizen, for that matter) can be taken to Guantanamo, tortured and killed for less than "whatever".


Excepted that's never happened. Ever. But whatever...


RE: I do like...
By idiot77 on 6/17/2011 5:17:12 PM , Rating: 2
http://www.mcclatchydc.com/2011/02/03/108050/suspe...

He was elliptical'ed to death. Have you ever done one of those? Such torture....


RE: I do like...
By foolsgambit11 on 6/17/2011 6:01:16 PM , Rating: 2
I think Reclaimer was referring to the 'American' part of the statement. Americans are held in America (although cases like Al-Marri's suggest they can be held indefinitely without charge here, too). To be clear, I'm not a fan of indefinite detention for anybody, US citizen or not.

As for the recent GTMO death, it's only a matter of time before you have somebody drop dead of a heart attack when many of the senior terrorist leaders are, well, seniors. They haven't been getting any younger in the past 9 years, and the 4000 calorie diet they're offered certainly doesn't help. When about 1 in 1000 people die of a heart attack per year in the US (not taking into account age brackets), it stands to reason that 1 in 170 middle-aged men would die of a heart attack over 10 years. Frankly, I'm surprised only 2 people have died in GTMO of natural causes so far.


RE: I do like...
By ekv on 6/18/2011 12:08:35 AM , Rating: 2
quote:
in the past 9 years, and the 4000 calorie diet they're offered certainly doesn't help
Where do you get the "4000 calories" number?

If that's true it is literally brilliant in a practical sense. Nobody wants those guys. You can't outright kill or poison them. And only the NY Times would see a conspiracy plot in feeding prisoners filet mignon and ice cream. Actually, if you could do a McDonalds Super-Size for every meal -- nah, that'd be too obvious 8)

Seriously though, just keep them at or over 200 grams of meat protein per day. That'd do the job. [Though not the Japanese, um, re-processed meat, which is kind of disgusting].


RE: I do like...
By foolsgambit11 on 6/20/2011 8:51:44 PM , Rating: 2
The diet has varied considerably over the years, from almost entirely vegetarian MREs to a culturally sensitive smorgasbord, with some reports suggesting that at times, detainees were given as much as 6800 calories per day. Of course, what was given to them to eat and what they eat are two different things, and I believe the number currently is a much more reasonable 2400 calories, or somewhere around that. Additionally, some detainees will temporarily be put on high-calorie diets if they are underweight, like after a hunger strike. So yes, picking one number like 4000 may be simplistic.

And I'm not implying a sinister plot, only that lots of food is on offer - it's still the detainees' choice whether they eat it or not.


RE: I do like...
By Justin Case on 6/17/2011 5:26:12 PM , Rating: 2
Are you employed by the CIA? If not, somehow I doubt you have any idea of what goes on inside Guantanamo or in our other concentration camps spread across the Middle East and Eastern Europe.

What you get is the "official version". As someone who has served in a couple of wars, I can assure you the official version rarely bears any resemblance to what actually happened.

It's amazing how many people accidentally cut off their heads while shaving. Especially since they didn't even have a razor...


RE: I do like...
By idiot77 on 6/17/2011 5:36:46 PM , Rating: 1
Awwww come on, I had to search for like a whole minute to come up with that joke.

You and your "truthiness", bah!


RE: I do like...
By ebakke on 6/17/2011 6:20:12 PM , Rating: 3
quote:
Are you employed by the CIA? If not, somehow I doubt you have any idea of what goes on inside Guantanamo or in our other concentration camps spread across the Middle East and Eastern Europe.
So I gotta ask... are you employed by the CIA?


RE: I do like...
By guffwd13 on 6/17/2011 6:51:45 PM , Rating: 3
quote:
So I gotta ask... are you employed by the CIA?


He was arguing you can't just say "anyone" can go to Guantanamo for "whatever" because unless you actually are privy to that information. He wasn't claiming to be privy, he's just saying he knows enough to not trust official reports just because they're official.


RE: I do like...
By YashBudini on 6/17/2011 7:22:09 PM , Rating: 2
quote:
It's amazing how many people accidentally cut off their heads while shaving. Especially since they didn't even have a razor...

I recall an episode of Law & Order where the detective said the mobster's death was ruled a suicide. Yeah, he shot himself in the head 5 times.


RE: I do like...
By FITCamaro on 6/18/2011 1:49:51 PM , Rating: 1
I guess its good to know that you know more than the media does. Or any other official.

Please. In a day when what someone has for lunch doesn't stay secret, if people were being killed in Gitmo, we'd know about it.

And I'd cheer every death.


RE: I do like...
By YashBudini on 6/18/2011 5:48:22 PM , Rating: 2
quote:
In a day when what someone has for lunch doesn't stay secret, if people were being killed in Gitmo, we'd know about it.


quote:
Hi Curly. Killed anyone today?

Billy Crystal as Mitch Robbins.

quote:
The day ain't over yet....

Jack Palance as Curly.

http://www.imdb.com/title/tt0101587/quotes


RE: I do like...
By Skywalker123 on 6/18/11, Rating: 0
RE: I do like...
By YashBudini on 6/19/2011 12:39:06 AM , Rating: 2
I think he simply wants to use them as buns for his Japenese sh!t sandwich.


RE: I do like...
By Divide Overflow on 6/19/2011 2:50:30 PM , Rating: 2
quote:
Excepted that's never happened. Ever. But whatever...

Don't try to confuse them with facts, it gets in the way of their attempts at hysteria.


I don't understand this.
By dgingeri on 6/17/2011 2:51:52 PM , Rating: 4
I have been putting together computers from parts for over 20 years, and I have never come across counterfeit parts. I've heard reports, but never seen them directly. Then again, I only buy from a few vendors that I trust: Newegg, Microcenter, and Dell. (I don't even buy that much from Dell, just monitors.)

I don't understand how government employees and managers can be so completely irresponsible as to get parts from shady vendors/contractors, especially for Defense oriented parts. It's certainly not a matter of not having the time. Doing things right doesn't take extra time, but it does take extra effort. This is really just people being lazy.




RE: I don't understand this.
By Lord 666 on 6/17/2011 3:06:37 PM , Rating: 3
Seen many fake Cisco parts, especially gbics


RE: I don't understand this.
By dgingeri on 6/17/2011 4:21:21 PM , Rating: 2
yeah, I heard about those. I have a coworker in Minnesota that told me he could get 8Gb FC SFPs for $60 each from his 'source' instead of our usual $125, but I declined. I prefer to get them from a reputable source so that I don't get any fakes. I get those parts from CDW and cables from TCC. I'm sure the ones I get are real.


By Divide Overflow on 6/19/2011 2:53:50 PM , Rating: 2
It's scary how we blindly turn over control over these components in the name of saving a penny here and there. The greed for profit plays right into the hands of those who are all to happy to exploit the situation.


RE: I don't understand this.
By tilandal on 6/17/2011 4:06:54 PM , Rating: 3
http://www.hardocp.com/article/2010/03/05/newegg_s...

Then there were the knock off Chinese capacitors from a few years ago that would fail prematurely. Pretty much every major OEM used them.


RE: I don't understand this.
By dgingeri on 6/17/2011 4:47:19 PM , Rating: 2
This is exactly why I do business with Newegg. Well, this and direct experience with their honest policies. It's rare to find a company that is run with complete integrity. Many companies will seem honest from one angle and be completely backhanded in another. Newegg is one of the best I've ever dealt with, and in 10 years I've bought from them, they've never failed me.


RE: I don't understand this.
By xyzCoder on 6/17/2011 8:38:43 PM , Rating: 2
Newegg would be OK if they didn't game their comments and do other such shenanigans. I don't trust them any more than the rest, although I do think they are better than most.


RE: I don't understand this.
By YashBudini on 6/17/2011 7:30:40 PM , Rating: 3
quote:
Then there were the knock off Chinese capacitors from a few years ago that would fail prematurely. Pretty much every major OEM used them.

And a lot of them are in big ticket items like wide screen TVs.

But hey, we still give them "most favored nation" status. I'd hate to see what our enemies would do to us if these are the good guys.


RE: I don't understand this.
By tng on 6/17/2011 4:35:49 PM , Rating: 2
quote:
I don't understand how government employees and managers can be so completely irresponsible as to get parts from shady vendors/contractors, especially for Defense oriented parts.
What surprises me is that there is not inspection requirements involved.

Normally what I have seen in many DOD procedures is that things are inspected and have to meet "Milspec" requirements before they are even accepted. I have seen this bump the cost of parts by 100 and 200%. Don't they have some thing in place for this?


RE: I don't understand this.
By borismkv on 6/17/2011 7:17:38 PM , Rating: 2
The only thing that has to meet Milspec is the initial device/piece of equipment that is inspected. The government doesn't inspect every single piece of equipment, just the "demo version." I've seen this in DIACAP work, where a new system is audited. If the system meets the requirements, the methods used to make it are published and every system that uses those methods meets the requirement. Unfortunately, none of those systems are inspected to ensure that they actually used the methods and equipment defined by the specification.


By Divide Overflow on 6/19/2011 2:48:14 PM , Rating: 3
You are looking at the product level rather than at the component level. Are you aware if each capacitor and every single tiny chip on that video card, motherboard, hard disk, etc, is legit and not counterfeit?

The vast majority of us would be completely oblivious to suspect parts in our tech goods. Even when problems arise, the manufacturers are quick to gloss over the issue, as their manufacturing process and sources are considered confidential.


What does it have to do with China?
By rvd2008 on 6/17/2011 3:40:02 PM , Rating: 5
"a Texan in January 2010 was found guilty of selling counterfeit Cisco Systems Inc... $25 USD a piece and resold 200 of them to the Marines for $595 a piece -- for a total of $114,000 USD in profit"
---
US contractor made a nice cut for himself from taxpayers money. US citizen made this decision, not Chinese.
Same as drug war in Mexico. We blame Mexican drug lords with right hand, while left hand is selling 'em guns. We openly condemn illegal immigration, while quietly hiring them for a penny and pocketing a buck. Its our own greed to blame.




RE: What does it have to do with China?
By borismkv on 6/17/2011 4:06:26 PM , Rating: 2
Well, frankly, the only difference between a counterfeit Cisco device and a Cisco device is the price.


By YashBudini on 6/17/2011 7:13:25 PM , Rating: 2
quote:
Well, frankly, the only difference between a counterfeit Cisco device and a Cisco device is the price.

Yeah right, I'm sure the soldering on the boards is right up there.
Not to mention stealing the Cisco's OS.

</rolling eyes>


RE: What does it have to do with China?
By tng on 6/17/2011 4:42:10 PM , Rating: 2
I disagree with you on this. There have always been shady vendors out there and there always will be, there should be some kind of inspection on items bought like that.

You can blame the guy selling the things or you can just say buyer beware. It is always better for the buyer to beware than trusting your sources. In other words, the DOD should know and vet vendors and parts manufacturers.


By rvd2008 on 6/17/2011 9:30:53 PM , Rating: 1
I am sure certain people at DOD got kickback from this guy. I don't believe for a sec that one guy fooled the whole department.


It is called a tariff
By Shadowmaster625 on 6/17/2011 5:12:44 PM , Rating: 3
And despite the various layers of propaganda, tariffs are not necessarily a bad thing.




RE: It is called a tariff
By ebakke on 6/17/2011 6:25:28 PM , Rating: 1
And watch the Chinese government reciprocate our newfound desire to tax trade with them.


RE: It is called a tariff
By TSS on 6/20/2011 5:49:16 AM , Rating: 2
Tariffs are a good thing if your supporting locally made stuff and don't mind paying a little extra for the stuff that cannot be locally made.

Tariffs are a very bad thing in a globalized world, where even locally produced stuff is shipped off abroad to be processed before shipped back to be sold near you, at more profit then when it was locally made.

So yes at the moment tariffs would be a very bad thing, because they would impact nearly everything made in western countries these days. However, globalization has failed once before, and looking at the world's finances it'll fail again pretty soon. So i expect tariffs to make a strong comeback in the future, when it won't be a bad thing to do so.


RE: It is called a tariff
By ebakke on 6/20/2011 1:08:10 PM , Rating: 2
quote:
Tariffs are a good thing if your supporting locally made stuff and don't mind paying a little extra for the stuff that cannot be locally made.
If people actually cared about supporting locally made stuff, tariffs would be unnecessary as people would pay for the higher cost, locally made product with their own free will.


RE: It is called a tariff
By JediJeb on 6/20/2011 2:49:38 PM , Rating: 2
I care about buying locally made stuff but the problem is when you go looking for it, there is none to be found. I wanted to buy a fishing pole and reel last summer and went looking for one made in the USA. I found a few fishing poles made here that I could special order, but the only reel I could find was for very large fish like sword fish and would not work very good for catching bluegill from my pond and it cost something like $250. Everything else I found, even from companies displaying that they are American Companies all had a country of origin listed as China.

I finally walked down the road and found some wild cane growing near the lake, cut it and let it dry and this year I have a 100% Made in the USA fishing pole and it didn't cost me a dime :P I will dig the worms in my back yard, use and old piece of cork I found in the shed and some hooks I found that were made in USA and the Chinese won't get any money from my fishing, though they will get a lot from everything else until I can find a way around it.


RE: It is called a tariff
By ebakke on 6/21/2011 9:31:25 AM , Rating: 2
Hey man, more power to ya! But surely you recognize you're the exception, not the rule.


Excuse me...
By room200 on 6/17/2011 2:33:38 PM , Rating: 2
Scott Brown is a Republican, not a Democrat.




RE: Excuse me...
By ClownPuncher on 6/17/2011 3:48:28 PM , Rating: 2
That's true, but not when the RNC disagrees with him, then he is a RINO...


RE: Excuse me...
By superstition on 6/17/2011 4:53:16 PM , Rating: 2
And like all of them (in both parties), he's a plutocrat.

He gives nice words here, but he stands for the same thing the rest of his party stands for (and the Dems do less openly, but nonetheless in roughly the same capacity) — plutocracy.

And, the two brands of our one plutocratic party notwithstanding, buying parts like these from China is a fabulous example of just how ridiculously corrupted our country has become.

Pretty soon it'll be your grandma on the auction block. Apparently everything is for sale now. The Trojan Horse of Chinese "cheapness" isn't very well disguised, but the public continues to shop at Wal-Mart and politicians have made sure, at the behest of their business friends, that more and more of America is outsourced.

Some day, the Chinese will simply replace those businessmen with their own people and then we'll see who comes to Boehner's (or fill in the blank with any of them) little talk about how "regulation" is the big problem in business that's standing in the way of profits.


RE: Excuse me...
By ebakke on 6/17/2011 6:32:33 PM , Rating: 2
quote:
politicians have made sure, at the behest of their business friends, that more and more of America is outsourced.
First, I only half believe that outsourcing is actually a problem. But the half of me that thinks it is, feels the blame for it is equally shared among company execs, politicians (but based on your post, I doubt we blame them for the same things), and the people of this country who ultimately make the choice of which companies they will support and which they will not.


RE: Excuse me...
By superstition on 6/21/2011 12:15:50 AM , Rating: 2
Politicians and business make choices for the masses.

Even cities that didn't want Wal-Mart were forced by court order to accept them. Guess what happens when Wal-Mart moves in?

Politicians are supposed to be representatives for the masses. They're supposed to be educated, wise, and upstanding enough to represent the needs of the masses better than the masses can do themselves (via pure democracy).

Instead, we see plutocratic dystopia as the future, based on the actions of the political-business nexus that does things like builds new law schools while simultaneously encouraging outsourcing legal work to India.


The Chinese are ripping off everything...
By MrBlastman on 6/17/2011 2:31:04 PM , Rating: 3
Look, they've even managed to rip-off Team Fortress 2 now...

http://kotaku.com/5812722/meet-final-combat-chinas... off

I'm worried though that the Demo's stickies might malfunction, the Spy's knife might have melamine coating the blade or the Soldier's rocket jumping ability might be gimped by him having weaker boots.




By Justin Case on 6/17/2011 11:03:41 PM , Rating: 3
Valve has managed to break Team Fortress quite thoroughly on their own.

TF2's graphics are nice, but both the gameplay and the netcode are a huge step back compared to TFC.

But hey, you get to collect hats, so that makes it all worthwhile...


Ponder this...
By The0ne on 6/17/2011 3:08:44 PM , Rating: 2
Our plastic injection mold came from China. We couldn't figure out why the PCBs were shorting out the minute the device was assembled. After a day of investigation I found out the plastic has metal particles that were conductive hahahhahahahahha

Now try to figure that one out!




RE: Ponder this...
By YashBudini on 6/17/2011 7:17:40 PM , Rating: 3
You get what you pay for.


We lose when we buy crap from China
By Beenthere on 6/17/2011 6:15:51 PM , Rating: 1
The only ones who win when the U.S. imports crap quality Chinese goods, are the corporate CEOs who get bigger seven figure salaries while more U.S. jobs are lost.

What amazes me is how dumb U.S. consumers are. Most don't even look to see where the product is made nor do they understand how buying this crap impacts their very existence. They must have flunked economics 101?




By YashBudini on 6/17/2011 7:24:09 PM , Rating: 2
quote:
They must have flunked economics 101?

What makes you think they ever took economics 101?


By FaaR on 6/17/2011 10:42:30 PM , Rating: 2
So where do YOU buy your tech gadgetry from then, hm?

Or perhaps you only use equipment from the 1980s, when stuff was still made in the US? Lol.


death penalty
By invidious on 6/17/2011 7:02:06 PM , Rating: 2
quote:
The DCIS investigation head James Ives cited an incident in which a Texan in January 2010 was found guilty of selling counterfeit Cisco Systems Inc. (CSCO) "Gigabit Interface Converters" to the Marine Corps for use in Iraq. Bought from a Hong Kong-based Chinese vendor, the contractor obtained the systems for $25 USD a piece and resold 200 of them to the Marines for $595 a piece -- for a total of $114,000 USD in profit before applicable taxes.
I dont see how this is anything short of treason.




RE: death penalty
By Justin Case on 6/17/2011 11:26:45 PM , Rating: 3
Try article III, section 3 of the Constitution.

If he had knowingly sold them hardware infected with spyware created by a foreign government, then yes, he would be guilty of treason.

As it is, he's only guilty of trading counterfeit goods.

One interesting question is why was the Marine Corps willing to pay $595 for a device that can apparently be manufactured for less than $25. Note that no one said anything about the converters not working; only that they weren't actually sold by Cisco. I guess it's a question that no politician will ever ask, or he'll be accused of "not supporting the troops"...


By nick2000 on 6/17/2011 4:24:07 PM , Rating: 4
I like how this article is blind to the real issue:
"However, there are serious problems from a culture of corruption and corner cutting with the Asian giant."

"The DCIS investigation head James Ives cited an incident in which a Texan in January 2010 was found guilty of selling counterfeit Cisco Systems Inc. (CSCO) "Gigabit Interface Converters" to the Marine Corps for use in Iraq. Bought from a Hong Kong-based Chinese vendor, the contractor obtained the systems for $25 USD a piece and resold 200 of them to the Marines for $595 a piece -- for a total of $114,000 USD in profit before applicable taxes."

The greed issue is American, not Chinese in this example...
That Texan should be tried for treason.

Oh, and outsourcing our manufacturing to China? Decisions made by Americans...




You get what you pay for
By m0mentary on 6/17/2011 2:24:06 PM , Rating: 2
no matter what you buy, electronics, customer service reps, defense parts, etc... why is it so hard to understand?




By HrilL on 6/17/2011 2:36:41 PM , Rating: 2
This is completely the defense contractors fault. They see this as a way for increasing their profits. Every contract should clearly state that all parts in the supply chain must come from the USA or a member of NATO country with no exceptions. Sure you can get parts cheaper but is it worth it if they're fake or faulty? So we end up having to pay for the same part 3 times which probably cost more than just getting the correct and quality part in the first place. This is clearly short sighted greed.




Makes sense
By bug77 on 6/17/2011 3:30:38 PM , Rating: 2
Get out of oil because some of it comes from troubled countries, but move everything else to China, cause that's trouble free. And you can't even slap those morons silly.




Mispelling
By ProsperoLT on 6/17/2011 4:20:05 PM , Rating: 2
2nd picture caption - "The DOD continues to use Chinese parts, though because their cheap."

They're (they are) cheap, not their.




Made in China
By Justin Case on 6/17/2011 5:32:16 PM , Rating: 2
Do you know why it's so hard to detect fakes coming from China? Because all the originals are made there too. The US has become a nation of lazy, arrogant salesmen.




budget
By inperfectdarkness on 6/17/2011 7:57:26 PM , Rating: 2
i'll be the first to point to this a one of the most substantial reasons WHY our military budget is of necessity higher than the "pundits" think it should be.

outsource even more (in order to save costs) and we'll end up with even more shiens like this. now i don't know about you, but i'd prefer our military to be equipped indigenously--for national security reasons. yes, there's a higher cost associated with this. if the difference is between having stuff WORK; and being incapacitated by faulty equipment (intenionally or unintenionally made as thus by china)....well i'll take the stuff made in the good old USA.




Wait.. 40% defective/counterfeit...
By Jalek on 6/18/2011 12:55:31 AM , Rating: 2
So what are they buying, 80% made in China?
And they're STILL spending over 670 billion this year?

You could buy a lot of fireworks with that kind of money.
A LOT.




Of course it's cheap
By idiot77 on 6/17/2011 5:38:03 PM , Rating: 1
It's like buying generics. You can expect ~50% failure rate so you can buy 2 instead of one. The cool part is the math works out for you if your lucky since they sold it for 1/2 off!




engrish
By Motoman on 6/17/11, Rating: -1
RE: engrish
By para82 on 6/17/11, Rating: 0
RE: engrish
By Spuke on 6/17/2011 3:54:46 PM , Rating: 2
quote:
You sound like an albino monkey aka a low-iq honkie with bad b.o.
You actually used the word "honkie"? LOL!

PS - LMAO!!


RE: engrish
By 91TTZ on 6/17/2011 4:09:16 PM , Rating: 5
So a guy you assume to be white makes a racist comment, then you respond by offending white people? Aren't you doing the same thing you're criticizing him for doing?


RE: engrish
By ClownPuncher on 6/17/2011 4:27:14 PM , Rating: 2
I wouldn't even call it a racist post, just a silly one.


RE: engrish
By Motoman on 6/17/2011 6:15:10 PM , Rating: 2
No sh1t. People are so retarded on the internet that you have to tag everything wit <sarcasm> or else they don't get it.

Learn some f%cking language skills.


RE: engrish
By tng on 6/17/2011 4:46:31 PM , Rating: 1
After having worked with the Japanese for almost 20 years, I find it funny, just because there is so much truth to it.

After correcting hundreds of tech manuals that had been translated from Japanese, I could cite examples that would seem even more "racist" in your eyes, but are none the less the truth.

Sounds like maybe you are just to PC to me....


RE: engrish
By msheredy on 6/17/11, Rating: -1
RE: engrish
By bubbastrangelove on 6/17/11, Rating: -1
RE: engrish
By idiot77 on 6/17/11, Rating: -1
"People Don't Respect Confidentiality in This Industry" -- Sony Computer Entertainment of America President and CEO Jack Tretton














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