I think the people who bought the material from Chinese without proper verification of the material should go to jail.
The nuclear power industry has also had problems with fake materials being used in nuclear reactor systems.
Counterfeit, Fraudulent, and Suspect Items
The NRC requires U.S. nuclear power plants to use only those products and services exhibiting the highest quality in agency-regulated activities. This has always been a cornerstone in the NRC’s mission of protecting public health and safety, promoting the common defense and security, and protecting the environment during the civilian use of radioactive materials. Vendors, suppliers and nuclear power plants must verify the quality of items destined for safety-related functions in NRC-regulated activities. Verification includes extensive inspections of an item’s critical physical characteristics, combined with rigorous performance testing, to provide reasonable assurance that parts will perform their intended safety functions when required to do so.
Each of the various NRC-regulated industry sectors use similar regulatory language to meet the highest quality assurance standards for the products and services employed in NRC-regulated activities. The NRC advocates a proactive approach to detect and prevent the intrusion of counterfeit, fraudulent, and suspect items (CFSI) into agency-regulated equipment, components, systems, and structures. The NRC routinely interacts with regulated companies, other federal agencies, international organizations, industry trade associations (nuclear & industrial), and academia to stay abreast of emerging CFSI trends.
The NRC inspection staff works with these outside organizations in order to evaluate vulnerabilities in procurement processes and to share best practices for the prevention of CFSI in the supply chain. The NRC holds periodic public workshops to provide information and updates on CFSI issues and to solicit industry feedback and lessons learned. Finally, the NRC participates in Nuclear Energy Agency (NEA) and International Atomic Energy Agency (IAEA) meetings to share CFSI information and lessons learned with foreign regulators.
https://www.nrc.gov/about-nrc/cfsi.html
Guidance Documents and Background Information for Counterfeit, Fraudulent, and Suspect Items (CFSI)
Generic communications are the NRC’s primary method of communicating a common need for information or resolution approach regarding an issue, or communicating NRC’s position and information on issues pertaining to a matter of regulatory interest. Generic communications also allow the NRC to communicate and share industry experiences and send information to specific classes of licensees and interested stakeholders. CFSI-related generic communications and other documents are listed below:
Descriptions of the various types of generic communications and their applications can be found on the NRC public website.
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https://www.nrc.gov/about-nrc/cfsi/guidance.html
Kobe Steel and others have provided falsified documents to over 700 reactor for over 70 years:
https://www.nrc.gov/docs/ML1935/ML19357A138.pdf
https://www.nrc.gov/docs/ML1935/ML19357A138.pdf