Serious Security Threat: China Sells Fake Microchips to U.S. Navy

by | Jun 29, 2011 | Headline News | 68 comments

Do you LOVE America?


    It seems the only time the US government does its due diligence with respect to security is when they are dealing with the citizenry. In yet another gaping security hole within the overall national security infrastructure, Wired Magazine reports that the U.S. Navy was duped into buying ‘fake’ micro chips:

    In 2010, the U.S. military had a problem. It had bought over 59,000 microchips destined for installation in everything from missile defense systems to gadgets that tell friend from foe. The chips turned out to be counterfeits from China, but it could have been even worse.

    Business Insider continues:

    …the chips weren’t only low-quality fakes, they had been made with a “back-door” and could have been remotely shut down at any time.

    If left undiscovered the result could have rendered useless U.S. missiles and killed the signal from aircraft that tells everyone whether it’s friend or foe.

    Apparently foreign chip makers are often better at making cheap microchips and U.S. defense contractors are loathe to pass up the better deal.

    The problem remains with these “trojan-horse” circuits that can be built into the chip and are almost impossible to detect — especially without the original plans to compare them to.

    So much for outsourcing. It’s gotten so bad that we can’t even manufacture our own military equipment anymore.

    Remember that all Chinese companies are, in essence, the Chinese government itself. Considering that the chips reportedly had back doors built into them, and were to be installed in highly sophisticated military defense equipment, this is nothing less than an act of overt espionage at the least, or as Karl Denninger noted at The Market Ticker, an act of war at worst.

    The Chinese sold to The American Navy microchips that contained “back doors” that allowed them to shut down their functionality remotely.  That is, they attacked our military through back-door, surreptitious means.

    That’s a declaration of war folks.

    We’re sure President Obama will just laugh this one off as a manufacturing mistake.

    But it most certainly was no mistake. The Chinese are at war with America. They may not be dropping bombs today, but the threat is real, for you see, a communist nation can only be at peace when every other nation is communist. That’s just how it works.

    The Chinese government, it seems, wanted these chips installed in our missile defense systems. And what purpose would that serve? It’s obvious, isn’t it? When the time was right, they would have shut down our missile defense capabilities utilizing the physically wired backdoors.

    We find it hard to believe that this is an isolated incident.

    If the bankers, financiers, politicians and corporate interests don’t bring about the destruction of America, the Chinese will do their damndest to ensure it happens.


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      1. I wonder how many have been bought already been installed before this discovery was made.

        • You only have to install one. The flunked checkout tests would pretty much doom the rest from getting installed.

          I suspect that a factory manager or two may be executed over this one…

          • I doubt that the U.S. bought any.

            If this is true, the media would have a bashing party with the Obama administration.

            Since the DOD has not mentioned anything about this, I would not take it seriously.

            • I don’t think America trusts them at all since many articles were written about spying, hacking and whatever.

              So I guess the U.S. missile system is not effective when it comes to protecting America. And why in the world if you don’t trust China all these years would you let them build your top secret chips?????

              The mainstream media also reported about China’s increasing defense budget of up to $79 Billion per year. And the mainstream media has been reporting all negative things about China for many years, and the U.S. still trusts them, duh? It doesn’t make a lot of sense.

              Not every articles that I read is accurate. As I’ve said If this is true, the media would have a bashing party with the Obama administration. Since the DOD has not mentioned anything about this, I would not take it seriously.
              There are many things used to distract from the real issues. “RAISING THE DEBT CEILING” which is the main issue right now. There will be no assets left for Social Security or any other emergency programs.

              An moneynews article: “S&P Warns That US Default Would Cause Global Markets to Crumble” FEARMONGERING TACTICS ARE USED to raise the debt ceiling.


            • .

              The U.S. makes its own microchips, and chips used for top-secret projects which are made in Silicon Valley, San Francisco, San Diego and other defense company locations.

              The gov’t would not let you know because it’s a top secret and I don’t think they would let China make top secret anything for the U.S.

              China produces millions of cell phones. The U.S. would never share top secret information on how to make chips, THAT IS THE U.S’s ENTIRE DEFENSE.


              • nearly 100% of rare earths used in weapons targeting and guidance systems come from China so you might want to reconsider your ideas.

            • The media would bury the story. They are a huge part of the problem we are having. They want a New World Order.

            • FOX would have had a bashing party, the rest of the media are in the tank for Obama.

            • You’re triple posting again Jane. I’m trying to take you, seriously.

            • Bashing Obama openly is not allowed. Anyone who watches the news knows that. We can say only so much before we are concidered a threat, or my favorite, Racist. Like the kid who was interogated by the FBI for a few hours at his school for posting something on facebook. There is no freedom of speech anymore. Welcom to the new America.

            • media would cover it up for the big clown, they would not want to make him look like a jerk. he bows to the chinese an evey other country

            • i don’t surprise about chinese counterfeits. i don’t think you can name one tech that made by china and chinese own idea. chinese government has been standing behide these chinese counterfeit companies.More than half china industries have been making counterfeits including military stuffs. Instead of banning counterfeits china gov has expanded them. These imitations has brought china 100 billions $ every month. According to studies, the # of counterfeits have increased more than 15% yearly. Every country has at least 30% or more china counterfeits. I don’t think china is a qualified country and should not be allowed to trade with other countries around the world. what can we do?

            • jane you are correct, it seems someone who made this agenda nonesense/useless.

        • I dont blame the chinese for doing everything they can to get an advantage over the usa.

          Given the fact the the usa, un and nato are on a warpath. China is doing what it can to provide time for itself. USA, UN and NATO are fighting and starting wars in the middle east. No one is stopping them. The citizens are just as worthless because they cant keep their governments from starting wars needlessly.

          China is looking out for itself and if it has to do whatever it takes, they will do it.

          The way things are going now, I wouldn’t be surprised if the USA and NATO starts to declare war on China, Russia, Iran, Brazil and Pakistan.

      2. Stop blaming China for the wanton ignorance of our government. What do you propose….a war with China? LOL

        • mentions about the tensions betwen China and the U.S.

          I do not believe it’s true when I read the reports that U.S. veterans were aware that our defense system was turned off by aliens.

          To me it’s just an excuse for something else. With the alien story and China selling the US fake microchips, what are they trying to tell us?

      3. i’ve read that it’s aliens who have been shutting off our nuclear weapons. turns out it was just the chinese effin’ with us…

        • I read that too and was seriously considering the possibility until I read this report 🙂

      4. I hope everyone that drives over the new bay bridge expansion from Oakland to San Francisco remembers this……since a large pre fabed element of the bridge was Made in China.

        • Jim, I seen that too… they built the whole bridge (prefab style).. I can not understand why they would do that and not have locals build it… ya they saved a few million they say out of multi billion deal but the money into the local economy gone..

          Mac, you really should look into that one..
          Bridge Comes to San Francisco With a Made-in-China Label

      5. Kind of silly of them. All they have to do is wait around.

      6. Everything is made in China. What do you expect for outsourcing American jobs. What about the 257 Free trade Zones ? We won’t have any problems with those. Barry (the puppet)treats the Chinese like friends. I guess he should since the USA owes them so much money. If you follow the REAL media this is no surprise. How could they be so naive to think that China would be concerned about our interests. I think it’s crazy to have China build our vital electronics. Good thing we didn’t outsource during WWII. If I was a WWII vet and I saw the Chinese flag flying next to the red, White and Blue on the grounds of the White House I would be very upset. Sorry for the rant but the Chinese could give a flying fook about the USA. Just my opinion.

        • During WWII the Chinese were our allies, and we had bases there. During Obama’s first inauguration there were Chinese flags alongside US flags on light poles around D.C.
          Google it.

      7. What do you expect? Government is incompetent.

        • Frank: Government is NOT incompetent. They are for the most part highly intelligent and highly competent. They know exactly what they are doing to US.

          Never underestimate the enemy.

      8. I want to see Jane use the Dong, I’m Waiting!

        • Grow up

      9. This is just crazy! Is there NOTHING beyond the limits of gov stupidity? We shouldn’t be buying anything defense-related outside of the US. At least that way we get screwed by our own people–and they’re easier to get to when the lynching party starts!

      10. Happens alot more than most people would want to know…my Lady works in the “tech field” and another friend owns a electronics company,I hear the inside scoop alot… fake chips are common and most are out of china,and our own govt demands backdoors in many devices as wellas the fact that cnina builds alot of these type chips to be able to spy or even to simply shut down the device in question at the flip of a switch or a rouge signal…and yes they do end up in all kinds of devices such as the new rad detectors they use in airports and in monitors that hospital use and airplanes and cars.

        Lots of safety equiptment in mines and such use china chips,I cant begin to tell you how much money is lost due to recalls/rework because of these cheap chips(manytimes made to look like a good brand(counterfiet)but its alot….sometimes its due to pure lying and decieving by the sellers of chips sometimes its an innocent mistake,but the fact is these things are out there and they are in almost anything that has chips in it…and one other truth is that while we could as a nation make these things the overall supply out there on the market are not made in America,we simply dont make alot of this stuff here anymore…cause some corporation can save a penny on a million of em and get the labor for even less….or something like that.

        • In a conflict, they could use something like this to paralyze our economy (if they don’t implode first). Our economy has always been our greatest strength. Sadly, it is in the process of being dismantled.

          China is built up to be a nightmare for USA, but they are hiding a lot. Their internal problems are supersized. 10% unemployment would be HOW many unhappy campers?

      11. “If the bankers, financiers, politicians and corporate interests don’t bring about the destruction of America, the Chinese will do their damndest to ensure it happens.”

        Don’t forget the unions, the welfare moochers, the ignorant and uninterested citizenry, the willing media, the lawyers and the liberal judges. They too are aiding in the destruction of America.

        The problem is huge with tentacles everywhere. I don’t see how we will wiggle our way out of this one.

        • “the welfare moochers, the ignorant and uninterested citizenry”
          Mr. Blutarsky, They are “products of the environment”… change the environment and they will change, cut them off without making the changes first and they will just die.. that is not good… we are ALL human beings used as slaves for profits to others..

          Kill the banks and End the Fed is the starting point.

          I am with you on what you really mean I hope.. lol
          I just have problems when I see others wish death on other sheep// I know call me I love everyone and everything other than the banks and corporations..

          • Unions? Unions are a gathering of workers to protect their rights…you don’t want unions so that Americans can work like employees in China 18 hours a day 6 or 7 days a week?

            Wake up. Folks need to come together, not be pulled apart by talking points and sound bites.

            Also, I agree….banks, Fed, big business, corrupt government those are the problems, not people who don’t know or understand because they haven’t been exposed.

            • Yea Sally, and they extort money from taxpayers with huge salary, benefit & pension demands.

              Their demands in the private industry have darn near run all the manufacturing plants out of the United States.

              There was a time & place for unions – when working conditions were dangerous. That by in large no longer exists here in America.

              These are not talking points. These are facts.

            • Also, Sally, you think that people who don’t know or understand aren’t the problem? Seriously?

              They are herded like sheep onto buses, promised a free meal & some obama money in exchange for the uneducated vote. They ARE part of the problem. They pay no taxes and get a vote.

              Representation without Taxation is Tyranny!!!

      12. My dear friends,
        It is with great sadness that I must inform you of the coming utter destruction of the United States. When any nation, or its people, choose to be willfully ignorant of the origination and maintenance of its liberties, then those liberties cannot long endure. And any society which pursues for itself, and condones among those in authority, the most egregious vices of laziness, greed and corruption, then enslavement and catastrophic destruction is their ultimate end. That ignominious end is now before you, my countrymen.
        My esteemed colleagues and I gave you a foundation upon which to build a great nation. And though we were imperfect, as all men are, we left the framework for future generations to enable and encourage the best of human nature, while severely limiting it’s darker aspects. Over time, those limits have been stripped away and you now see what the basest of humanity is capable of.
        Today, you live in a society where integrity is shunned and ridiculed, and where evil is proudly paraded through the streets. A world where your enemies control the very means of defending your land. And a world where the followers of the most vile human elements freely conduct their plans to erase your borders, open you to invasion, control the value of your labor by worthless fiat currency, indoctrinate your children with their lies, control the flow of information throughout the country, and to starve you into total submission.
        There are but a few of you who recognize the infinite value of Liberty and it’s coming demise. Prepare for the battle ahead. Stand your ground. Give no quarter to the enemy. Fight bravely with pen and sword, and may God be with you.

        The ghost of T. Jefferson

        • @Smokin’ Okie

          Awesome post!

        • very well said Smokin’ Okie

      13. Trust China??? Hell, America is giving them a city…in Idaho…complete with a factory…probably to make chit with lead in it for our children!!!
        Not so far to ship.

        • JJ: Not going to happen if WE vote patriots into office next year.

      14. Me Chinese, me pway joke, me put …ahhh, but seweously Ahmerica make da bwest chips like ahh fritos and ahhhh pwingles.

      15. Check the damn products before u accept payment. Duh! This is pure capitalism–greed and fraud. China counterfeit everything from brand name to imitation products.
        AND1 is well international recognized brand while One AND is cheap China brand. We all know about western story of Harry Potter. China has Horry Petter which is imitation of Harry Potter.

      16. You want to pay peanuts, expect to get monkeys.

      17. If the US government bought chips from any one, even if it was domestic..and they didnt test them before putting them into place than they are pure Idiots, period.

        I dont care where you buy something from , if its a critical component in a safety possition and its not tested for compliance then they deserve what they got.

        Hahahahah so our own government got bit by the Wal-Mart Bug..fucking rubes

        seriously there needs to be a competency test for our dumb ass so called “leaders” of this once free country..cripes

      18. well for a while there they were selling us poisoned milk to feed our babies, they were selling us poisoned dry wall to build our homes.
        So why wouldn’t the Chinese sell us FAKE MICRO CHIPS to service our government computers?
        And we are dumb enough to continue to do business with them?
        BOYCOTT Chinese goods

      19. This is another facet of the Dick’s plan to screw Americans.

      20. mac: i take issue with your characterization of China as a communist nation, as if a red threat continues to exist in the world. the problem is big enough without trying to gin up some decades old meme. china is a totalitarian junta. There are very few aspects of classical communism remaining in China; that which does remain is mere window dressing. The explosion of the middle class is all the evidence one needs to determine that egalitarian socialist principles are not in the forefront of any central planning effots. instead, resources flow upward from the peasants, through the middle class, and into the elite where wealth is accumulated; same as in the USA or the PIIG nations.

        they’re just another capitalist kleptocratic kakistocracy.

        • somebody got a new dictonary

        • Now just a cotton-pickin’ minute sam! Long, rambling, incoherent comments are my turf and I’d appreciate it if you’d stay off! And as soon as I get back to the library to look up some more words, you’re gonna get it!
          In all seriousness though, your characterization of china is pretty accurate. It appears to be just another bunch of greedy people at the top squeezing all they can from those below them. The commie ideology just provides a cover for oppressing the masses.

          (capitalist kleptocratic kakistocracy…now THAT’S sweet!)

          • a kakistocracy is rule by the incompetent. i saw it on a bumper sticker once and googled it at a stoplight.

        • Have to agree somewhat. It is embarrassing that the Chinese are more capitalist than we are.

      21. red dawn will happen only this time it will be the chinese!

      22. “I have come to a resolution myself as I hope every good citizen will, never again to purchase any article of foreign manufacture which can be had of American make be the difference of price what it may”

        “If people let government decide what foods they eat and what medicines they take, their bodies will soon be in as sorry a state as are the souls of those who live under tyranny.”

        “If once the people become inattentive to the public affairs, you and I, and Congress and Assemblies, Judges and Governors, shall all become wolves. It seems to be the law of our general nature, in spite of individual exceptions.”

        Thomas Jefferson
        (Famous quotes)

        He was a brilliant man! Too bad we have forgotten (or never been taught) so much of our history.

        • A big problem is that for local business to be able to compete here is they still need all the parts imported.
          Assembled in the US.. is just that..
          Its like a table made in china that gets its legs screwed on in BFE, Indiana is now an american product.
          Free trade needs to be repealed is what needs to happen.

      23. “Remember that all Chinese companies are, in essence, the Chinese government itself. ”

        Same as here. It is not the Chinese people against the American people. It the Chinese government corp against the United States gov corp.

        If only the people would quit working for either one…

        • agreed. there is a revolving door between government and corporations. glenn greenwald has hit on this point to great success in his writing.

          it’s a new cold war, except the proxies are corporate instead of governmental. it’s not like the sandanistas vs. the contras. it’s general motors vs. chang’an motors.

      24. What’s the matter with all of you? I LOVE all my chinese products. My house is full of chinese drywall, my computer has chinese chips in it, I buy all of my food marked “made in China”. The only thing I would NOT buy from China is a suicide kit. Most likely it wouldn’t work.

      25. China is a paper tiger economically and militarily. On the economic side they are a centrally controlled economy which always end in failure. Two they have a real estate bubble that is THREE times bigger then the real estate bubble back here stateside. They have ghost cities that no one can afford to buy. Three they have major inflation problems that will soon go out of control. Since 2009 they having printing and spending money like no tomorrow. They face a prospect of a total economic collapse by hyperinflation.

        On the military side their “military rise” is highly overrated. China has no way to project military power outside of China.
        Their military is land locked in China.

        They have no long range bombers
        They have no Blue Water Navy

        They do not have the logistics capability to support forces outside of China.

        They are no threat to us at all. We have alot of problems but China has a large population,demographics nightmare,and wide gap between rich and poor. They will collapse and have a hard fall. We have problems but I for one am optimistic that we will get pass this economic collapse. All this China hype is bullshit.

        • you’d be right if the front of this new hegemonic international conflict were military, but it’s not. china doesn’t need to project power militarily, except to fake out the US into spending more resources on military to match up against perceived chinese advances. this cold war is being fought in board rooms and g8 summit working groups and with trading algorithm head fakes.

          that’s why it’s important not to try to stuff the new bilateral global conflict into some 20th century US vs. USSR context. it’s its own animal that growls in an entirely different manner.

        • Uh, I seem to remember reading jackass bill Clinton giving the secrets to stealth bomber to China, please correct me if I am wrong, the jackass part I know is correct!

        • To a great extent USA is it’s own worst enemy.

      26. Any nation who is serious about its security, handles ALL of its security on our own soil. It is RETARDED that we should contract anyone other than triple security checked americans to manufacture these things. Lord knows we need the jobs. Our security is a joke and we are going to reap what we sow.
        If I leave my doors and windows open at night, and I get robbed, I damn well deserved it. We are so screwed.

      27. Personally I don’t believe Clinton or anyone else compromised national security giving China anything that did not have a surprise in it. If they got it it’s bugged or somehow works in our favor.

        The US is sneaky, real sneaky. Think Ross Perot just happened to form a computer company to work in Iran? Google is so often in bed with the CIA I think their pregnant with intel offspring. What about that bit of software that destroyed Iran’s nuclear program?

        RETARDED? They are anything but. “Watch my right hand, watch my right hand, bam, a kick in the ass” not only was it not seen but it wasn’t even expected.

        Concern yourself when that sneaky, sneaky is turned on you.

        • Okay, the pregnant with intel offspring comment gave me a chuckle, I have to admit. Thanks for that. Unfortunatly, the govenment makes so many Homer Simpson “DOH” moves so often, it is hard to have confidence that they wouldn’t bumble something like this. And I can see the “watch my right hand” perspective, but with a government as top heavy as ours, does the right hand know what the left is doing half the time? Who knows. Let’s hope you’re right.

      28. the biggest threat to the USA is washington DC not china, lybia, or any other country.

      29. you know what? if our Military is buying shit from China…then they deserve what they get..

        maybe our military should wake those up in washinton as to what happens when you rely on others rather than yourself!

      30. China has yet to make a single, high-quality original commercial product that they can sell abroad. Think about that: everything they currently peddle to the world is either a) completely stolen from Western manufacturers, 2) was given to them, 3) they are doing it under the direction of a Western company, like Apple.

        Quality is a big issue. Much of what they make doesn’t last. Now imagine their military: if their military products are built to the same standards as my Chinese toaster, then they wouldn’t last long in battle.

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