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Bloomberg report

China holds sensitive f-35 parts diverted to Hong Kong

Published : Thursday, 24 September, 2026 at 3:12 PM
Observer Online Report
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The Chinese government has taken possession of potentially sensitive F-35 stealth fighter parts that were diverted to Hong Kong while being shipped to the U.S. from Australia, and has not returned them.

Shipping company UPS was transporting a cockpit canopy and weapons-bay door from an Australian military F-35 to the U.S. for inspection and possible repair or disposal in late May when the shipment was diverted, according to sources who spoke on condition of anonymity.


Both parts, supplied by Lockheed Martin, were coated with radar-absorbing material that enhances their stealth capabilities, two of the people said.

The shipment stopped in South Korea en route to the U.S. and was then routed to Hong Kong, according to one source. It remains unclear why the shipment stopped in South Korea, why it was diverted to Hong Kong, or whether the diversion was intentional or accidental.

China has not returned parts

A Chinese Embassy spokesperson declined immediate comment, while China's Foreign Ministry said Thursday it was "not aware of the situation."

The disclosure comes at a politically sensitive moment: Chinese President Xi Jinping arrived in the U.S. on Wednesday evening for a state visit hosted by U.S. President Donald Trump.

At least two congressional committees are investigating how the parts ended up in Chinese hands.

Sen. Elissa Slotkin, a Michigan Democrat, drew a pointed contrast between the timing of the incident and Xi's visit. "The juxtaposition is hard to miss," she said on Bloomberg Television's "Balance of Power."

"The Chinese are holding some of our most sensitive technology, and we are rolling out the red carpet for their president," she added.

She said she had not been briefed on the matter, adding: "When it comes to intelligence and military issues, China is a competitor and an adversary. They are always seeking information about our military equipment, sensitive information."

The Pentagon said it is working to retrieve the components.


"We are aware of a shipment issue of unserviceable F-35 components. We are actively working with U.S. authorities and industry partners to retrieve these components, investigate the incident, and place safeguards to avoid a future occurrence," a Pentagon statement said.

A Lockheed Martin spokesperson in Australia said the components "are unserviceable and deemed low risk for exploitation."

Lockheed separately said the Defence Department selects the transportation options used for shipments and that the company works closely with carriers "to develop and implement preventive measures to strengthen our collective oversight and prevent recurrence."

UPS disclosed the incident to the State Department's Directorate of Defence Trade Controls out of caution, according to Bloomberg.

Australia confirms diversion, says no sensitive parts involved

Australian Defence Minister Richard Marles confirmed Tuesday that Australia was aware of the shipment and is working with the U.S. and Lockheed Martin on the investigation.

"We've been made aware of this, and we're obviously working with the United States and Lockheed in terms of how we can assist in this investigation," Marles told reporters in Adelaide.

Marles said it was his understanding that no sensitive parts were included in the missing shipment, adding: "We are examining very much everything that has occurred at the Australian end, but the point I would make here is that we are confident about the way in which we've engaged with the program... This is ultimately a matter for the U.S. and Lockheed, as its prime contractor and the contractor that is responsible for managing the global supply chain."

A spokesperson for Australia's Department of Defence said the government takes "the protection of classified and export-controlled technologies extremely seriously."

Congressional scrutiny and broader espionage concerns

The diversion is under review by the House Foreign Affairs and Armed Services committees, as well as the Senate Armed Services airland subcommittee.

Armed Services Committee spokesperson Heather Vaughan said the "committee is aware of this issue and we've received multiple briefings on it," while Senate subcommittee spokesman Dave Vasquez said it "is aware of the reports and is currently looking into the matter."

During a closed Senate Armed Services Committee hearing on June 23, Defence Department program office officials expressed hope the components would be returned, according to people familiar with the exchange.

China has for years targeted the F-35 program in its espionage efforts, and concerns about Chinese intelligence-gathering were a factor in the collapse of a proposed F-35 sale to the UAE first announced during Trump's first term.

Members of Congress have separately raised concerns that a recently approved $24 billion F-35 sale to Saudi Arabia could risk exposing sensitive U.S. military technology to China; Rep. Raja Krishnamoorthi, D-Ill., said the U.S. intelligence community has warned the sale "could put the crown jewels of American military technology within reach of the Chinese Communist Party."

JJ Gertler, a former Congressional Research Service aviation analyst now with the Defence Concepts Organization, said: "It's always best when your adversaries have to guess at your capabilities. You never want to hand them evidence."

The F-35 program

The F-35 Lightning II, manufactured by Lockheed Martin, is regarded as the world's most advanced fighter jet, with roughly 20 countries having purchased the aircraft, including Australia, Japan, South Korea, Canada and Singapore.

There are eight original F-35 partner countries: the U.S., the U.K., Australia, Italy, the Netherlands, Canada, Denmark, and Norway, with several additional nations, including Türkiye, previously part of the program before being removed.

Türkiye was excluded in 2019 after purchasing Russia's S-400 air Defence system, over concerns that the system could be used to gather intelligence on the jet's stealth capabilities.

Australia serves as the Indo-Pacific hub for F-35 parts and maintenance for allied operators in Asia and received its first F-35 in 2014, with its air force reaching full operational capability in 2025.

F-35s have also flown missions during the Iran conflict, with one aircraft sustaining damage from enemy fire, according to the Department of Defence.


-SA


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