China’s state-owned shipping giant COSCO has used concealed equipment aboard some of its vessels to collect intelligence on military communications near the coastlines of countries including the U.S., according to two senior Trump administration officials.
The officials, who spoke on condition of anonymity, said COSCO has maintained a decades-long intelligence-gathering relationship with Beijing.
They said the arrangement allows China to collect signals from military and civilian vessels and aircraft operating across Europe, North America and Asia.
According to the officials, the equipment is designed to collect signals that could give China insight into military communications systems and encryption technology.
The information could also help Beijing monitor important shipping lanes and maritime routes used for both trade and military operations.
The officials described the systems as sophisticated signals-intelligence platforms rather than standard communications equipment. They said China could use the information to strengthen its position in territorial disputes and improve its ability to track foreign military activity.
COSCO did not respond to a request for comment. China's embassy in Washington rejected the allegations, calling the claims “totally baseless”.
The allegations come amid growing scrutiny in Washington over the links between China's commercial shipping industry and the country's military and intelligence services.
A 2025 report by the U.S. Naval War College said China's People's Liberation Army was likely using fishing and commercial shipping fleets for intelligence and surveillance.
The Pentagon added COSCO to a list of companies linked to China's military in January 2025. The designation does not impose formal sanctions but can lead to reputational damage and restrictions on U.S. government procurement.
Chinese law requires companies to support government intelligence work, although Beijing says it does not ask firms to illegally collect information abroad.
Despite the security concerns, COSCO remains deeply embedded in global trade and continues to call at major U.S. ports.
The Trump administration previously proposed billions of dollars in port fees targeting Chinese shipping companies, including COSCO, as part of an effort to rebuild the U.S. maritime and shipbuilding industries.
The plan was later paused following a trade agreement between Trump and Chinese President Xi Jinping.
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