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Ian Talley
Reporter
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Sep 28, 2026
Inside the Supply Chain: How a China-Linked Firm Infiltrated a $2 Billion Army Contract
15:05
32:35

Hagar ShamaliHOST
registered entity on paper, I guess maybe a mix of it all, or was it something else? And as far as you know, does this company still have the contract?
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15:17Ian TalleyGUEST
I know that the last I checked, both the contractor and DEVCOM, the unit doing this future warfare contract, were investigating the contract itself, the contractor and the product.
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15:40Ian TalleyGUEST
I think DevCom said it hadn't been yet to be unwrapped, sort of trying to tell us that no information had been sort of compromised if there was a potential compromise.
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15:55Ian TalleyGUEST
So to answer your question about where the breakdown was, well, I'm not a lawyer, but I can ask the question, what responsibility did the subcontractor have to talk about its ties to a Chinese military entity? It's what kind of responsibility did the contractor have to to report its ties to a BIS entity listed entity? Well, then the question is, you know, is there sufficient enforcement? of these laws to make the the change the risk premium for companies that that don't disclose these types of risks right then there's the question of well is the To what extent is the contractor responsible and is it being held to account? Is the risk premium being raised to the extent that you better believe it's going to check its supply chain next time or not? If it's a slap on the hand fine or no fine at all, then that doesn't seem to raise the risk premium.
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17:24Ian TalleyGUEST
And the only risk is the slight embarrassment that Karen or somebody else reports on it.
15 MINS LATER

Hagar ShamaliHOST
Ian, can you zoom this out a little bit for us? What does this case tell us about the broader threat of Chinese penetration of American defense and critical infrastructure? Can you paint an example of why this activity and effort on the part of Beijing, or really any other adversary, poses such a threat to us you know you mentioned in your piece for example you spoke to somebody um i believe a former government official who highlighted why it's quite scary to have a chinese company detecting vulnerabilities in our weapon systems so can you paint you know it's a little bit hypothetical but i really want we jay and i really try to highlight these threats that people don't pay attention to and i really want the listener to understand what this really means