The Penalty for UTC

The U.S. authorities imposed a penalty on the corporation UTC for the illegal supply of engines to the PRC attack helicopters to drive Z-10. Its amount was $ 75 million.


Since 1989, when it came to the events at Tiananmen Square, which killed many civilians, the PRC is clad by the U.S. embargo on supplies of arms and its components. The embargo does not apply to similar devices civilians. In the case of dual-use equipment must obtain a license.

June 28 United Technologies Corp. officially acknowledged that it has provided to the PRC, through its subsidiary, Pratt & Whitney Canada, and goods for the production of attack helicopters Z-10. PWC for many years selling their engines to the PRC, which formally serve to drive aircraft and civil helicopters. However, the differences between military and civilian drives are often small. It happens that only rely on a different gear or software. 

UTC and PWC wanted to extend the share of the lucrative Chinese market, estimated by them at $ 2 billion, so it does not comply with the restrictions, sometimes simply by supporting China's military record with their technologies and know-how. The main subject of the sale, which raised concerns the government, was the software engine, developed by another subsidiary UTC - Hamilton Sundstrand. 6 versions of the software version of the military went to the PRC in 2002-2003.

The heads of the group acknowledge that figured in the supply of such use from 2003-2004, but according to materials provided to the court, they knew about it since 2000. The Chinese initially hid that builds helicopters. Manufacturer Z-10 - CAIC for many years to buy the necessary components of saying that they used for the production of civilian machinery.


The investigation into the illegal supply of engines, PT-6C-67c by PWC were pending since 2006. Ultimately, company agreed to pay a penalty in the arbitration proceedings. Its amount was $ 75 million. $ 20 million would receive the Department of Justice, but he may cancel the claim, if the UTC will spend money on development of the U.S. economy. The remaining $ 55 million is expected to be the State Department.

According to the Department of State, UTC since the mid-1990s. more than 800 times violated provisions of the Arms Export Control Act. 576 imposed in connection with the penalty for this group of different heights.