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A bit of Occam's Razor might be called for before suggesting hidden agendas and IP theft by foreign governments.

It sounds like a new program that overpromised, didn't plan well, and struggled to deliver would have been a similar experience.

Perhaps Hanlon's razor too: never attribute to malice what can be attributed to incompetence.

I like this a lot - always give others the benefit of the doubt!

That was my first thought as well. I see nothing overtly "unethical" here... what I see is classic poor planning and management.