State Metal Industries, a smelting company in the United States have admitted to selling illegal missile parts, particularly that of the AIM-7 Sparrow to the Chinese government.

The scrapped parts including missile electronics were orginally sold to State Metal Industries to be melted into ingots, however officials discovered these components at Port Elizabeth on its way to China.

The Department of Defense had warned the contract bidders about the senstivities of the components and had asked them all not to resell these products, however, we can see that's not the case.

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