U.S. Officials Say COSCO Ships Carried Hidden Spy Gear Near American Coasts—China Calls It Baseless
Commercial cargo ships moving through some of the world’s busiest ports may have carried a hidden second purpose, according to a new U.S. intelligence assessment.
Two senior Trump administration officials told Reuters on Sept. 1 that vessels operated by China’s state-owned shipping giant COSCO used concealed equipment to collect military communications near coastlines in the United States and other countries.
The officials described the devices as sophisticated signals-intelligence platforms rather than ordinary shipboard communications hardware. They said the alleged collection program could help Beijing study military communications technology, monitor encryption developments and track strategically important shipping routes across North America, Europe and Asia.
Those allegations have not been proven in court or supported by publicly released photographs or technical evidence. The officials spoke anonymously because they were discussing a classified U.S. assessment.
China rejected the allegations
China’s embassy in Washington called the claims baseless and denied that Beijing orders companies or individuals to illegally collect intelligence overseas. Embassy spokesperson Liu Chang told Reuters that China opposed what he characterized as an effort to vilify the country through an intelligence-collection narrative.
COSCO did not respond to Reuters’ request for comment before publication.
The disagreement leaves the central allegation sharply disputed: U.S. officials say commercial vessels contained equipment designed to intercept sensitive signals, while China says the accusation has no factual basis.
The Pentagon already lists COSCO as linked to China’s military
The new report arrives against a broader backdrop of U.S. concern about China’s policy of combining civilian industry with military development.
In January 2025, the U.S. Defense Department added COSCO Shipping to its list of Chinese military companies operating directly or indirectly in the United States. An updated Pentagon document published June 8, 2026 again included COSCO Shipping and several related entities.
That designation does not itself prove the latest surveillance claims, and it is not the same as a formal financial sanction. It does restrict U.S. government procurement and signals the Pentagon’s conclusion that the listed entities support China’s military-civil fusion strategy.
Reuters also cited a 2025 U.S. Naval War College report that assessed the People’s Liberation Army was likely using portions of China’s commercial shipping and fishing fleets for intelligence and surveillance work.
Why the allegation is difficult for Washington
COSCO is deeply integrated into international commerce. Its vessels call at American ports, and the company participates in terminal-service ventures supporting U.S. container traffic.
That commercial reach creates a difficult policy problem. Restricting a shipping network so closely connected to American supply chains could impose major economic costs even if national-security concerns intensify.
The Trump administration previously planned new fees targeting Chinese-linked shipping as part of an effort to rebuild U.S. shipbuilding capacity. Those measures were paused following a temporary trade agreement with Chinese President Xi Jinping.
President Donald Trump and Xi are expected to meet in Washington later in September, when security and trade tensions may again collide. Until the United States releases more evidence, however, the most serious claim—that concealed collection equipment was installed aboard COSCO vessels—remains an allegation from unnamed U.S. officials that China categorically denies.
