web (not news … it’s quite old now) search for “loral china technology” and you should find stuff.
http://www.loral.com/china-investigation.html
Basically, here’s what happened:
Intelsat, an international communications consortium, wanted to put a commercial communications satellite in orbit.
Intelsat hired Loral to make the satellite.
Intelsat hired the Chinese to launch the satellite. The Chinese used one of their Long March rockets, the same sort they would use to hit us with ICBMs. No shocker there, since the US and Russians have always used ICBM rockets for space launches.
The US govt. (under Clinton) approved a waiver allowing the US company, Loral, to launch on a Chinese rocket. Both Bush Sr. and Clinton had approved a number of such waivers over the years.
Problem: the launch failed (as rocket launches often do).
The Chinese, being secretive, conducted a private investigation of the failure. They announced that the failure was caused by a low-tech problem: a failed solder joint.
Insurers, among them US insurers, weren’t too happy with all this, and said they would not insure future launches w/o more data/assurances. So they set up a committee, including people from Loral, to request information from the Chinese so that they could make a better assessment. The Chinese complied, and, judging by the information they were given, the committee said, yep, it was that darned solder.
Then the committee made a mistake: It sent a report back to the Chinese without first getting approval from the US Govt. (who has to sign off on all communications, apparently, in order to prevent unauth. tech. transfers).
In the course of this committee’s work, they sent no techical data to the Chinese, made no suggestions about improving missile guidance systems, etc. It sounds like they just sent a report back on their findings, which were based on Chinese information and agreed with it. (I have not read the report, so yes, it’s possible that they said, “Oh, and by the way, if you recalibrate your guidance gyroscopes you’ll increase your accuracy by 45%…”)
The main problem is that they failed to go through channels, and there was the risk that the Chinese could have gained technology secrets from us. But that does not seem to have happened.
The further complication (isn’t there always one?) is that Loral/its founder was apparently a contributor to the Democrats (gasp! no govt. contractor has ever given money to the party in power…).