COSCO Ships Spy for China, U.S. Says

Two senior Trump administration officials allege China's state-owned shipping giant COSCO uses concealed equipment on its ships to spy on military communications near the coastlines of target nations including the U.S. The officials, who spoke anonymously to Reuters, claim the company has a decades-long intelligence-collection partnership with Beijing. This arrangement allows China to collect communication signals from vessels and aircraft operating across Europe, North America and Asia.

They say the advanced equipment is intended to enable China to gather information about military communications technologies and encryption developments. The effort also reportedly enables Beijing to monitor key international shipping lanes and maritime routes crucial for both trade and military navigation.

U.S. Assessments and Chinese Denials

The officials described the equipment as sophisticated signals intelligence collection platforms, distinct from routine communications hardware. They allege Beijing uses the information gleaned to bolster its position in territorial disputes and to provide maritime reconnaissance and early-warning indications of foreign military targets.

China's embassy in Washington firmly rejected the allegations. Embassy spokesperson Liu Chang stated the Chinese government would never ask any company or individual to collect or provide data, information or intelligence located abroad against local laws. Liu called the narrative totally baseless. COSCO did not respond to Reuters' request for comment.

Broader Context of Alleged Ties

A report from the U.S. Naval War College in April 2025 suggested it was likely China's People's Liberation Army was harnessing the country's fishing and commercial shipping fleets for intelligence and surveillance gathering. Chinese law requires the country's firms to support government intelligence work.

In January 2025, the Pentagon placed COSCO on its list of companies linked to China's military. This designation carries serious reputational costs for companies as well as U.S. government procurement bans, but does not entail formal sanctions. Despite this, COSCO remains one of the top global shipping companies calling at U.S. ports and operates several terminal service joint ventures for container ships there.

Commercial and Security Dilemmas

Isaac Kardon, an expert in Chinese maritime strategy at Johns Hopkins School of Advanced International Studies, highlighted the dilemma for U.S. policymakers. Taking COSCO out of our supply chains and transport networks could be life-threatening surgery to U.S. trade networks, Kardon said.

The Trump administration last year planned to implement billions of dollars in port fees on Chinese shipping companies, including COSCO, in an effort to revitalize the atrophied U.S. shipbuilding and maritime industries. That plan was paused after Trump reached an agreement last October with Xi for a year-long trade war détente. The agreement expires in November, and a possible extension is expected to feature in the September talks between the leaders. U.S. President Donald Trump and Chinese leader Xi Jinping plan to meet in Washington for a summit later this month, when they are expected to discuss a range of sensitive security and trade issues.