NEW: A Chinese spy balloon that crossed over the United States in 2023 was packed with American technology that could have enabled it to spy on Americans, according to two sources with direct knowledge of a technical analysis conducted by the U.S. military.

The discovery of a satellite communication module, sensors and other tech from at least five American firms underlines the failure of U.S. efforts to restrict exports of technology that could have military uses to main adversary China as well as to countries such as Russia and Iran. It also raises questions over the role of private companies that sell their equipment globally in keeping control over the ultimate users of dual-use technology that can have defense applications as well as civilian uses.

A Chinese patent reviewed by Newsweek describes a communications system for exactly such a balloon as the one that crossed America, based on using a satellite transceiver from a U.S. company that the balloon's controllers in China would use to communicate with it and that would send data back, and that is easily available online.
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