Chinese state-owned shipping company COSCO is allegedly using concealed equipment aboard commercial vessels to collect military communications near the coastlines of the US and other countries, two senior US officials told Reuters.
The officials said COSCO has supported Beijing’s intelligence operations for decades, enabling China to intercept signals from ships and aircraft operating across North America, Europe, and Asia.
They described the onboard systems as sophisticated signals intelligence equipment rather than standard communications hardware.
However, they did not identify the technology involved or publicly disclose evidence supporting the assessment.
Collected data could help China analyze foreign military communications and encryption technologies, monitor strategic shipping routes, and provide early warning of potential military targets.
COSCO did not comment, and the Chinese Embassy in Washington rejected the allegations as “totally baseless,” saying Beijing does not ask companies or individuals to collect intelligence abroad in violation of local laws, according to Reuters.
Collecting Intelligence
The allegations come amid broader US concerns that China’s vast civilian maritime network could also support military objectives.
A 2025 US Naval War College report assessed that the People’s Liberation Army (PLA) was likely drawing on Chinese fishing and commercial fleets for intelligence, surveillance, and reconnaissance.
According to the study, China may operate hundreds of specialized maritime reconnaissance units.
Personnel trained to identify and report intelligence sail aboard designated “information boats” and other civilian vessels, remaining in contact with local military departments that pass relevant information to operational PLA forces.
The report also assessed that China was likely extending this model beyond its coastal waters by placing intelligence personnel aboard distant-water fishing vessels and merchant ships operating internationally.
Last year, Washington placed COSCO on its list of companies allegedly linked to China’s military, but its extensive presence at US ports and involvement in North American container-terminal ventures complicate efforts to restrict its operations.