Canada Blocks $3 Bn China Contract over Espionage Risks: Report

(Source: Journal de Québec; posted Sept. 09, 2020)

OTTAWA --- Ottawa has for about two years prevented Pratt & Whitney from exporting aircraft engines to China in a large $ 3 billion transaction, due to risks of industrial espionage.

The Quebec company has so far been unable to obtain from the federal authorities the necessary permit to deliver the goods to its customer, the Chinese aerospace giant AVIC.

Three sources have confirmed that Pratt & Whitney Canada (P&WC) is experiencing particularly long delays from the federal department of Global Affairs Canada.

According to the information obtained, the contract with AVIC provides for the delivery of engines as part of a regional turboprop aircraft project. Four first engines were to be brought to China, we were told.

In July 2018, Pratt & Whitney took the necessary steps to obtain federal authorizations. But this request remained unanswered. Under federal law, certain Canadian goods and technologies cannot be exported without the issuance of a permit issued by Global Affairs.

In 2017, P&WC reached a definitive agreement for this $ 3 billion transaction with AVIC. The PW150C engines are to power the aircraft’s new aircraft, the MA700. (end of excerpt)

Click here for the full story (in French), on the Journal du Québec website.

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