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The Z-10’s development has been highly controversial. Five aircraft were powered by Pratt & Whitney Canada PT6C-67C engines fitted with full authority digital engine controls developed by Hamilton Sundstrand. Following investigations by federal agencies, United Technologies Corp., the parent company of the two firms, was fined $75 million for violating the Arms Export Control Act and making false statements in connection with the illegal export to China of U.S.-origin military software in June 2012.

According to evidence heard in the trial, China has sourced the engines under the pretense of producing a civil medium transport. PW&C provided up to 10 engines for the aircraft.