Washington’s latest security allegation against China COSCO SHIPPING Corporation has exposed a problem beyond whether Chinese cargo ships are collecting military communications: the carrier remains deeply embedded in global trade while the US has temporarily suspended a maritime penalty regime aimed at Chinese shipping.
Reuters reported that two unnamed senior Trump administration officials said COSCO has maintained an intelligence-collection relationship with Beijing for decades. According to the officials, concealed equipment aboard some COSCO vessels can intercept signals from military vessels and aircraft operating around North America, Europe, and Asia.
One official said the alleged collection includes information on military communications technology and encryption, while also supporting monitoring of strategically important maritime routes. Reuters reported that the systems were characterized by the officials as specialized signals-intelligence equipment rather than ordinary ship communications hardware.
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The allegation arrives after the Pentagon had already formally moved COSCO deeper into Washington’s military-security framework. The Defense Department placed the Chinese firm on its Section 1260H list of “Chinese military companies” in January 2025. and in an updated June 2026 notice, the Pentagon kept the parent company on the list and said it is directly controlled by China’s State-Owned Assets Supervision and Administration Commission.
The department also determined that COSCO “officially acts on behalf of the PLA” and qualifies as a contributor to China’s military-civil fusion system.
The June update removed COSCO SHIPPING Finance Co. Ltd. from the designation while continuing to list the parent and several other subsidiaries.
There is broader evidence that Beijing views ostensibly civilian vessels as potential intelligence assets. An April 2025 China Maritime Studies Institute report from the US Naval War College found that intelligence collection is a core function of parts of China’s maritime militia. The report said Chinese military researchers have advocated placing intelligence personnel aboard vessels operating overseas and assessed that Chinese-owned or operated merchant ships are likely already being used in this way.
China’s legal framework adds another layer. Article 7 of the country’s National Intelligence Law requires organizations and citizens to support and cooperate with state intelligence work.
Beijing’s embassy nevertheless rejected the COSCO allegations and said Beijing would not require companies to gather information overseas in violation of local law.
COSCO SHIPPING Lines says that, together with Orient Overseas Container Line, it operated 596 container vessels with roughly 3.6 million TEU of capacity as of May 2026. Its network reached 663 ports across 146 countries and regions.
Washington had already developed a mechanism capable of raising the cost of Chinese shipping. In April 2025, the Office of the US Trade Representative announced Section 301 measures including fees on China-based vessel owners and operators and on operators of Chinese-built ships.
But the Trump administration suspended those actions for one year beginning November 10, 2025 after reaching a trade agreement with Beijing. Unless the policy changes before then, that suspension runs until November 10, 2026.
