7/31/2019 China Fake Parts

http://slidepdf.com/reader/full/china-fake-parts 1/2

7/31/2019 China Fake Parts

http://slidepdf.com/reader/full/china-fake-parts 2/2

But the report said that use of Department of Defense programmes such as the

Government-Industry Data Exchange Program (GIDEP), designed to log suspected fake

parts, were "woefully lacking".

Between 2009 and 2010 the GIDEP only received 217 reports relating to

suspected fake counterfeit components, the majority of which were filed by just six

companies, it said. Only 13 reports came from government agencies.

The report also said that in some cases the US defence department had reimbursed

contractors for the costs they incurred as a result of their failure to spot fake components

in their own supply chain - giving companies no incentive to weed out counterfeits

themselves.

But it praised the National Defense Authorization Act, signed into law on 31

December 2011 by President Barack Obama, which aims to stop counterfeit parts from

entering the country and would cut down on sourcing components from unknown

suppliers.

The report's focus on China comes as the US is beginning the task of "pivoting"

its defence strategy towards the Asia-Pacific region.

The Pentagon is also preparing to absorb about $450bn (£285bn) of cuts over the

next decade.

But it could face cutbacks of a further $500bn if mandatory across-the-board

spending cuts come into effect at the end of 2012, after Congress failed to reach a

deficit reduction plan last year.

22 May 2012. Last updated at 02:35 GMT