COLLEEN MCEDWARDS, WORLD NEWS: The United States government says the country's largest aerospace and defense firm has illegally done business with the Chinese government. CNN's Bob Beard has the story.</s>BOB BEARD, CNN CORRESPONDENT (voice-over): Lockheed Martin is in trouble over Chinese rocket launches. The State Department charges the defense giant violated U.S. arms export laws by providing China a detailed analysis in 1994 of a Chinese-made kick motor that sends satellites into final orbit. A State Department spokesman said "Any assistance to the Chinese government has the potential to be applied to missile development." The 50-page analysis went to AsiaSat, a Hong-Kong firm, majority- owned, the State Department says, by a Chinese state-run conglomerate. The State Department says China received the report before the Pentagon could remove sensitive information, and the U.S. government didn't know about it until the Customs Service discovered its existence. Representative Chris Cox says the revelations show some improvement in technology controls.</s>CHRISTOPHER COX, U.S. HOUSE MEMBER: It shows that there are cops on the beat, and that technology transfer to the Peoples Republic of China is being looked after.</s>BEARD: These civil charges come two years after criminal allegations against GM's Hughes Electronics unit and Loral Corporation for sharing satellite technology with China. Lockheed Martin says its actions were consistent with an export license granted by the Commerce Department. Congress shifted control of satellite exports back to the State Department last year. A company spokesman tells MONEYLINE, "National security was not harmed. No technology was exported to the People's Republic of China and Actions taken in 1994 would not be taken today."</s>RAYMOND MARKS, DORSEY & WHITNEY: They have every interest in trying to be exonerated of these charges. If they are not, this can very well hurt their standing as a U.S. defense contractor.</s>BEARD (on camera): Lockheed Martin has a month to respond to the charges. It could face up to $15 million in fines and could be barred from exporting satellite technology for three years. Bob Beard, CNN Financial News, Washington.
U.S. Charges Lockheed Martin With Doing Illegal Business With  China