COSCO Denies Spying Claims as US Accuses Ships of Hidden Intelligence Gear
China’s fourth-largest carrier rejects allegations its 566-vessel fleet intercepts military communications near US and.
The state-owned shipping giant, which operates the world’s fourth-largest container fleet with 566 ships and a capacity of over 3.6 million TEU, issued a strongly worded statement on September 4, 2026, rejecting reports that its vessels carry “sophisticated signals intelligence collection platforms” to intercept military communications near coastlines across Europe, North America, and Asia.
The allegations, first reported by Reuters on September 1, originated from two unnamed senior Trump administration officials. They asserted that COSCO ships have been fitted with concealed equipment designed to monitor communication signals from military vessels and aircraft, potentially giving Beijing strategic insights into key shipping lanes and maritime routes critical for global trade and defence.
COSCO’s response was unequivocal. In a statement, the company said it “firmly opposes any acts that try to undermine our corporate brand and hinder our global operations through dissemination of false or misleading information.” It added that all equipment on its vessels, including navigation, safety, and operational systems, is used “solely for legitimate commercial purposes,” such as ship-to-shore communications and emergency response, and not for intelligence gathering.
COSCO Shipping Holdings
What the US Allegations Claim, and Why COSCO Is Fighting Back
This is not the first time COSCO has faced accusations of ties to the Chinese military. In January 2025, the US Department of Defense added COSCO Shipping and two of its subsidiaries to its annual list of companies linked to China’s military, a move that, while largely symbolic, could discourage US firms from engaging in business with the Chinese giant.
The latest allegations also recall broader US concerns about Chinese technology in global supply chains. In 2023 and 2024, the Trump administration raised alarms about Chinese-manufactured cargo cranes installed in ports worldwide, claiming they could “call home” and collect sensitive data.
The Trump administration has also proposed fees for Chinese-built or operated ships calling at US ports, further tightening the regulatory environment for COSCO and other Chinese maritime firms.
The Broader Context: COSCO’s History with US Scrutiny
COSCO’s rapid expansion in recent years has made it a key player in global shipping.
The timing of the allegations is particularly fraught, as Trump and Xi are scheduled to meet in Washington later this month for a summit that could either ease tensions or escalate them further. The two leaders last met in China in May 2026, but the upcoming talks will be their first face-to-face encounter since the latest round of accusations.
Any disruption to its business, whether through sanctions, tariffs, or reputational damage, could have ripple effects across industries, from retail to manufacturing. The shipping giant has already warned that the allegations could “hinder our global operations,” a concern that will likely be echoed by its partners and customers.
For the maritime industry, the dispute highlights the growing intersection of geopolitics and global trade. As nations increasingly view shipping lanes and port infrastructure as strategic assets, companies like COSCO find themselves at the centre of broader power struggles. The outcome of the Trump-Xi summit could set the tone for how these tensions play out in the coming years, with implications for everything from freight rates to the security of global supply chains.
In the meantime, COSCO has vowed to take legal action to protect its reputation, signalling that the dispute is far from over. For now, the company’s message is clear: its vessels are commercial assets, not tools for espionage, and it will fight to keep them sailing.
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