China's state-owned shipping giant COSCO rejected a report published last week alleging that the company had concealed advanced surveillance equipment aboard its cargo ships to monitor US military communications near the coastlines of target nations, including the US.
Reuters quoted COSCO on Friday as calling the allegations "totally unfounded" and false.
What Reuters reported on Tuesday:
The officials, who spoke on condition of anonymity to discuss the U.S. assessment of the Chinese program, said COSCO has a decades-long intelligence-collection partnership with Beijing. The arrangement allows China to collect communication signals from vessels and aircraft operating across Europe, North America and Asia, they said.
The advanced equipment aboard the ships is intended to enable China to gather information about "military communications technologies and encryption developments," one of the officials said.
The world's fourth-largest container carrier also told the outlet:
COSCO SHIPPING has always adhered to market‑oriented operations and compliance practices across all our global businesses
All communication, navigation, safety and operational equipment installed on our vessels is used solely for legitimate commercial purposes, including navigation safety, ship-to-shore communications and emergency response.
The allegations surface just weeks before Chinese President Xi Jinping's expected Sept. 24 visit to Washington for talks with President Trump.
If substantiated, COSCO's alleged use as a signals intelligence operations would fit a broader pattern of Chinese gray-zone activity in which commercial infrastructure and civilian technologies are leveraged to advance state objectives.
Dr. Ryan Clarke of the CCP BioThreats Initiative wrote in a book last year that Beijing's strategy increasingly combines next-generation weapons with irregular and nonkinetic tools, including synthetic narcotics such as fentanyl and cannabinoids, what he characterized as biological weapons involving COVID-19, psychological influence through platforms such as TikTok, and other instruments of unconventional warfare.