Chinese 'spy balloon' was loaded with US technology: Newsweek
6 Min Read
This finding highlights shortcomings in US efforts to prevent the export of dual-use technology—products with both civilian and military applications—to China and other nations.
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Chinese spy balloon in US airspace (AP)
A Chinese balloon claimed to be for espionage, which drifted across the United States in 2023, was loaded with American-made technology capable of intelligence gathering, Newsweek reported, citing two sources familiar with a US military analysis.
The examination revealed the presence of a satellite communication module, sensors, and components from at least five American companies. This finding, as per the report, highlights shortcomings in US efforts to prevent the export of dual-use technology—products with both civilian and military applications—to China, as well as to other nations. It also raises concerns about the role of private firms in tracking how their equipment is ultimately used.
Dive deeper
A Chinese patent reviewed by Newsweek describes a communications system designed for high-altitude balloons like the one that crossed the US, utilizing a satellite transceiver from an American company. This system would have allowed Chinese operators to send and receive data remotely. The large, white balloon first entered US airspace over Alaska in January 2023, then drifted across Canada and the American Midwest, attracting widespread public attention. It was ultimately shot down by an F-22 fighter jet off the South Carolina coast on February 4.
The balloon, estimated to be about 200 feet tall, carried a dark-colored frame measuring at least 30 feet across. Suspended from the frame was a tech payload approximately 10 feet in length, which included advanced surveillance equipment. Newsweek reported, citing its sources, that some of the technology was housed in a simple foam cooler.
Beijing maintained that the balloon was a meteorological device that had accidentally veered off course due to strong winds, accusing Washington of overreacting.
What was inside the balloon?
The report, citing its sources, asserted that the payload was specifically designed for surveillance, enabling the capture of images and the collection of intelligence data. Given the classified nature of the findings, the sources, who were not authorized to discuss the matter publicly, requested anonymity.
The balloon may have also been capable of deploying small, launchable gliders for more detailed reconnaissance. The sources noted that its storage bays were empty, but Chinese researchers have developed such gliders for use with high-altitude balloons, as evidenced by aerospace studies reviewed by Newsweek.
The National Air and Space Intelligence Center (NASIC) in Ohio conducted a 75-page analysis of the recovered parts, including components from what appeared to be two additional balloons. The NASIC unit responsible for examining foreign technology conducted the review.
The Biden administration previously described the balloon as part of a larger Chinese surveillance program targeting multiple countries.
Satellite communications technology
The recovered technology closely resembles a system described in a 2022 patent awarded to scientists at the Chinese Academy of Sciences (CAS) Aerospace Information Innovation Research Institute. This Beijing-based institute has ties to China's military and defense industry.
According to Newsweek's sources, the balloon contained an Iridium 9602 satellite communication module—a product from Iridium, a Virginia-based global satellite communications provider. Notably, Iridium’s headquarters are located less than five miles from CIA headquarters.
The analysis found that, in addition to Iridium's technology, the balloon incorporated components from four other US companies and at least one Swiss manufacturer.
"A Chinese company would not have given them full satcom coverage over the U.S.," one source, a former federal intelligence employee, told Newsweek.
Was American tech used to spy on the US?
At the time, Chinese Embassy spokesperson Liu Pengyu reiterated China’s stance that the balloon entered US airspace by accident.
"The straying of the Chinese civilian unmanned airship into the U.S. airspace was an accident caused by force majeure," Liu said in an email statement.
"The airship, used for meteorological research, unintentionally drifted into the US because of the westerlies and its limited self-steering capability. China had made these details available to the US side, after earnest verification and in the shortest possible time," the statement added.
How did US technology end up in a Chinese spy balloon?
Iridium, which counts the US Department of Defense as its largest customer, told Newsweek that it does not track the end users of its products. The company noted that its satellite modules are widely available on the resale market and that it has commercial partners in China, though it declined to name them.
"We certainly don't condone our radios or our modules ending up and being used in ways they shouldn't be," said Jordan Hassim, Iridium’s Executive Director for Communications. He added, "There’s no way for us to know what the use is of a specific module. For us, it could be a whale wearing a tag tracking it, it could be a polar bear, an explorer hiking a mountain."
Iridium’s 9602 satellite module is small enough to fit in the palm of a hand and is advertised as providing "critical data communications necessary for truly global solutions." It can be purchased online for less than $150 without an export license unless intended for a prohibited use or end user—determinations that are left to the buyers.
"If Iridium were to learn of misuse, it would immediately work with partners, including the U.S. government, to disable it," Hassim said.
Along with Iridium, other US companies whose components were identified in the balloon include: Texas Instruments, Omega Engineering (Connecticut), Amphenol All Sensors Corporation, and Onsemi.
Additionally, Swiss company STMicroelectronics was found to have parts in the balloon.
Both Texas Instruments and STMicroelectronics told Newsweek they were unaware that their technology had been used in the balloon but emphasized their compliance with export controls. The other companies did not respond to requests for comment, as per the report.
Are US export controls failing?
James Mulvenon, Chief Intelligence Officer at Pamir Consulting, a Virginia-based intelligence firm, criticized the effectiveness of US export restrictions.
"The cynic in me would say what we're talking about is slamming the barn doors as hard as we can after the horse has bolted so that the hinges come off," Mulvenon told Newsweek. "The Chinese military modernization revolution started in 1998. It’s 2025." However, he added, continued vigilance is necessary.
