COSCO Denies U.S. Allegations That Its Ships Used Concealed Equipment To Spy For Beijing

China’s state-owned shipping company COSCO has denied claims that its vessels were used to collect military intelligence for Beijing, calling the allegations “totally unfounded” and false.

Two senior Trump administration officials said COSCO used hidden equipment on its vessels to spy on military communications near the coastlines of countries including the United States.

The officials said COSCO has had a decades-long intelligence-gathering partnership with Beijing. They said this allows China to collect communication signals from ships and aircraft operating across Asia, Europe, and North America.

The officials spoke on condition of anonymity. They did not name any COSCO vessels or say what equipment was allegedly used.

COSCO said the equipment on its ships is used only for normal commercial operations.

It said its communication, navigation, safety and operational equipment is used for legitimate purposes such as navigation safety, ship-to-shore communications and emergency response.

COSCO also said none of the equipment on its vessels was used to intercept military communications or collect intelligence. The company said it reserved the right to take legal action to protect its reputation.

It is not the first time COSCO has faced security allegations in the United States.

In the late 1990s, members of the U.S. Congress raised concerns over COSCO’s proposed lease of a terminal at the former Long Beach Naval Station. The Clinton administration said the project did not pose a security threat.

More than two decades later, U.S. authorities required OOIL to sell the Long Beach Container Terminal after COSCO acquired the Hong Kong shipping group.

The $1.78 billion sale was completed in 2019 under a national security agreement. COSCO also faced U.S. sanctions in 2019.

Washington sanctioned two COSCO tanker units over Iranian oil trades. The measures caused a sharp rise in very large crude carrier rates before they were partly lifted months later.

Recently, the Pentagon added COSCO to its list of companies it considers linked to China’s military.

The U.S. Trade Representative also targeted Chinese shipping and shipbuilding with port-fee measures last year. Those measures could return this autumn.

China’s embassy in Washington has previously said Beijing would never ask any company or individual to “collect or provide data, information or intelligence located abroad” against local laws.

The allegations come as Chinese President Xi Jinping is expected to visit Washington for talks with U.S. President Donald Trump on September 24.

References: Reuters, ibtimes