Full Breakdown
U.S. Accuses COSCO of Conducting Maritime Signals Intelligence for Beijing
9/2/2026, 12:59:22 AM
Alleged Espionage Activities on COSCO Vessels
Two senior Trump-administration officials, speaking anonymously, said the state-owned carrier COSCO equips its ships with concealed “sophisticated signals intelligence collection” hardware. The equipment is purported to intercept military communications and monitor encryption developments from commercial and military vessels and aircraft operating across North America, Europe and Asia. The officials added that the data are used by Beijing to support territorial disputes and to provide early-warning indications of foreign military activity.
U.S. Government Assessment and Policy Response
A U.S. Naval War College study released in April 2025 concluded that the People’s Liberation Army likely leverages China’s commercial shipping and fishing fleets for surveillance. In January 2025 the Pentagon placed COSCO on its list of companies linked to the Chinese military, a designation that triggers procurement bans for federal contracts but not full sanctions. The Trump administration outlined a plan in 2025 to impose billions of dollars in port fees on Chinese ocean carriers, including COSCO, to revive the domestic shipbuilding sector. That plan was paused after President Donald Trump and President Xi Jinping reached a year-long trade-war truce in October 2024; the agreement is set to expire in November, with its possible extension expected to be discussed at the September summit.
Chinese Government Rebuttal
The embassy characterized the U.S. narrative as “totally baseless” and warned against vilifying China.
Expert Analysis
Isaac Kardon, an expert in Chinese maritime strategy at Johns Hopkins School of Advanced International Studies, warned that COSCO’s integration into U.S. trade networks makes any decisive security action difficult.
Verbatim Quotes
- “Taking COSCO out of our supply chains and transporter networks could be life-threatening surgery to US trade networks,” — Isaac Kardon
- “Taking COSCO out of our supply chains and transporter networks could be life-threatening surgery to U.S. trade networks,” — Isaac Kardon
