The owner of a logistics company previously involved in F-35 freight projects, and reported to have diverted a shipment of classified F-35 parts to Hong Kong, recently partnered with a firm blacklisted for its ties to the Chinese military.
This development, which has not been previously reported, comes after Defence Minister Richard Marles played down concerns that the Chinese military has gained access to classified technology on Australian F-35 fighter jets. US outlet Bloomberg has this morning reported that the Chinese government has taken control of the parts.
As ADM reported on Monday, the shipment of F-35 components from Australia was bound for the United States for repairs before it was unexpectedly rerouted to Hong Kong and disappeared.
Hong Kong is a special administrative region of China.
First reported in Politico, the shipment reportedly included an F-35 canopy, which is covered in a sensitive radar-absorbent material that degrades over time and requires subsequent repair or replacement.
Defence Minister Richard Marles said on Tuesday that the missing parts are ‘not sensitive’, although prior generations of radar-resistant canopy materials, such as gold film used to reduce the canopy radar signature on older generations of fighter jets, were classified.
According to The Nightly, citing unnamed defence industry figures, the intermediary company involved in shipping the parts on behalf of jet manufacturer Lockheed Martin was CEVA Logistics. However Bloomberg, citing people briefed on the incident, has reported the carrier was UPS.
ADM understands that CEVA Logistics is the primary logistics provider for Lockheed Martin and has its own distribution contracts with companies like UPS.
In a statement, CEVA Logistics said: “CEVA Logistics has not been contacted by any customer, regulator, audit agency, or government authority concerning these alleged activities. We are not aware of any facts indicating that CEVA Logistics had any involvement in the matter described.”
CEVA Logistics, which has previously transported F-35 parts, operates storage facilities at RAAF Base Williamtown, where Australian F-35s are serviced, and is a fully owned subsidiary of CMA CGM Group, a French logistics company. It is not clear whether the missing parts were shipped from Williamtown.
Approximately one third of CMA CGM Group’s operating revenue comes from China, according to comments made by the CMA GGM chairman in a meeting with the Chinese consul in Marseille last year, as cited by the Chinese Ministry of Foreign Affairs on its website.
On August 28, CMA CGM signed a strategic framework agreement with China Communications Construction Company (CCCC), which is owned by the Chinese government.
Under the agreement, CMA CGM can provide shipping solutions for major Chinese infrastructure developments in Africa, Southeast Asia, the Middle East and Latin America.
CCCC has been identified as a Chinese military company on the US government’s Entity List since 2021 for its role in building military outposts in the South China Sea.
In November 2020, US President Donald Trump issued an executive order forbidding Americans from owning shares in CCCC due to its links to the Chinese military.
CCCC was also debarred by the World Bank in 2007 for involvement in corruption scandals in the Philippines. The company later faced money laundering charges in Kuwait for funds routed there through Hong Kong as part of Malaysia’s enormous 1MDB scandal.
It is not known why the shipment of Australian F-35 parts was diverted to Hong Kong, or whether CEVA Logistics, which has previously won an award for its participation in the F-35 Transport Team, was responsible for this specific shipment. The company statement is clear that it has not been contacted about the matter.
The F-35 program has long been a target for Chinese intelligence agencies. The acquisition of a F-35 canopy might allow China to copy the radar-resistant design on its own fleet of advanced fighter aircraft, or validate the quality of existing intelligence sources that may have previously supplied it with information on the jets.
Updated 24 Sep, 7.40 pm to include the following statement from CEVA Logistics:
“CEVA Logistics has not been contacted by any customer, regulator, audit agency, or government authority concerning these alleged activities. We are not aware of any facts indicating that CEVA Logistics had any involvement in the matter described.”
Added: The company statement is clear that it has not been contacted about the matter.