The U.S. State Department Office of Defense Trade Controls has charged Lockheed Martin with 30 separate violations of the Arms Export Control Act. The company was told it has 30 days to respond to civil charges, which could result in a fine as high as US$15 million and a ban on exporting satellites or satellite technology for up to three years. Lockheed Martin denies the charges and vows to contest them. A General Accounting Office report that looked into the matter last year said that while Lockheed Martin's action "represented a loss of technology, [it] did not significantly harm national security."

Four of the charges relate to alleged travel by a team of Martin Marietta AstroSpace engineers in January 1994 to Hohhot, China, for test firings of motors to be used in launching an Asia Satellite Telecommunications Co. (AsiaSat), Hong Kong, telecommunication satellite, AsiaSat-2, and for discussions with officials of the Chinese company involved in carrying out the project. The motor, reportedly, had suffered multiple failures during test firings. The U.S. State Department alleges Martin Marietta AstroSpace failed to advise the U.S. government of these events at least 30 days prior to the proposed meeting, as was required. The charges also allege that Martin Marietta AstroSpace failed to ensure the requisite presence of a qualified Defense Department monitor. Martin Marietta AstroSpace had obtained a U.S. Commerce Department license before assessing the satellite motor. Lockheed Martin believes, "Martin Marietta at that time took actions that were reasonable and consistent with those licenses."

After Martin Marietta AstroSpace completed its study, the company forwarded 10 copies of the 50-page document to AsiaSat. AsiaSat is partially owned by China International Trust and Investment Corp. (CITIC), a conglomerate owned by the Chinese government. CITIC was a passive investor, owning one-third of AsiaSat. Martin Marietta AstroSpace performed the technical assessment under a strict confidentiality agreement with AsiaSat that prohibited dissemination to firms or government entities in China. Prior to sending AsiaSat copies of the report, Martin Marietta AstroSpace sent its study for review by the U.S. Department of Defense, where export control officials removed what they considered sensitive information that could have helped China improve its military rocket capabilities. Following the Pentagon review, Martin Marietta AstroSpace shared the edited document with China Great Wall Industries, a company also owned by the Chinese government, the developer and operator of the Long March 2E rocket.

The U.S. State Department alleges that Martin Marietta AstroSpace sent the unedited version to AsiaSat before the U.S. Department of Defense had blacked out all but five of the 50 pages. Sharing the redacted version of the study with China Great Wall Industries violated U.S. export regulations, which prohibit any technical assistance "that might enhance [Chinese] space launch vehicles." In performing and sharing the study, Martin Marietta AstroSpace also violated U.S. rules by identifying flaws in Chinese testing procedures, confirming the results of Chinese tests pinpointing faulty insulation, and identifying problems with solid rocket motor technologies.

The SpaB-17 solid rocket perigee kick motor, built by Hexi Company, used to send AsiaSat-2 into its final orbit, is capable of firing only once, and was, for export control purposes, a commercial commodity regulated by the U.S. Department of Commerce. Other, more sophisticated kick motors, capable of firing multiple times and repositioning satellites once they are in their final orbits are considered defense technologies subject to regulation by the U.S. State Department. 

Six years ago, Martin Marietta AstroSpace thought it was operating on a sound legal basis having a U.S. Commerce Department license. Today, Lockheed Martin would first check with both the U.S. State and Defense departments prior to performing such a study.

Martin Marietta merged with Lockheed in 1995, to form the Lockheed Martin Corporation. AsiaSat bought AsiaSat-2, an AstroSpace 7000 satellite bus, from GE AstroSpace in October 1992, though it was built by Martin Marietta AstroSpace. Martin Marietta agreed to buy AstroSpace from General Electric in November of 1992, closing the purchase in April of 1993.  The satellite was launched on a Long March 2E on November 28, 1995.   

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