Investors Concern Over Technology Transfer to China Gains Attention

Buyers and investors of stock in the Icon Aircraft company have continued their battle in the backdrop of an investigation being undertaken by the Committee on Foreign Investment in the U.S. (CFIUS).

American investors have alleged that the dominant stakeholders from China used their purchase of a portion of the company in order to illegally transfer its technology to china. The Chinese investors maintain that they are only carrying out a regular tech licensing agreement, a belief repeated by the manufacturer at their direction.

The worry is that the amphibious, lightweight aircraft could be used for not only civil aviation equipment in Asia, but weapons development as well. The integration of amphibious landing capability, and lightweight but well-sorted handling could easily serve as the basis for an unmanned weapon system. Given the country's ambitions in the South China Sea, it wouldn't be out of the realm of possibility for Icon to be the target of an information transfer to jump start such a development program. Any who snickered at the idea of the Icon A5 becoming a combat machine were quickly proven wrong, when company co-founder Kirk Hawkins cited a previously confidential Pentagon program that looked into the plane as the base of an unmanned combat vehicle. A possible Navy/Marine Corps A5-derived UAV would leverage the design's folding wings, floating hull, and He said the government should therefore stop the technology transfer by the Chinese shareholders before they can complete the process. The recipient of all this know-how is a government backed science and technology investment company, the exact kind of outfit that would be perfect for loading up on useful foreign patents, information, and materials. 

Icon seems to feel differently, describing the forcibly ousted former CEO and active board member as being motivated out of his own self-interest instead of any real national security worries. It maintains that the A5 is unsuitable for military use, though it should be said that the company and the board are both firmly under the control of the Shanghai investment firm. While the review is taking place, no shortage of mudslinging seems to be going on, as accusations of deals, threats, and buyouts have bounced around on each side. Currently, the CFIUS isn't the only one taking a gander at the goings-on behind the scenes, with the FBI conducting its own investigation into possible criminal violations related to the deal and tech transfer. 

FMI: www.iconaircraft.com