GOP Lawmakers Urge Revocation of Chinese Shipping Giant's Port Privileges Amid Espionage Concerns
Top Republicans demand Homeland Security strip COSCO of special status, citing Pentagon designation as a military company and alleged intelligence gathering.
Three prominent House Republicans have called for the U.S. Coast Guard to revoke special privileges granted to a Chinese state-owned shipping company, COSCO, citing concerns that its vessels may be used for spying on American military communications. The lawmakers are pressing Homeland Security Secretary Markwayne Mullin to end COSCO's enrollment in the Quality Shipping for the 21st Century (Qualship 21) program, which offers reduced inspections for trusted commercial operators.
The push comes after a September report alleging that COSCO vessels used sophisticated, concealed equipment to intercept military communications and gather intelligence on encryption technologies near U.S. coastlines. The lawmakers pointed out that as of July 15, 2026, eleven COSCO vessels were listed in the Qualship 21 program, despite the Pentagon having designated COSCO as a Chinese military company.
COSCO, headquartered in Shanghai, is owned by the Chinese Communist Party. The Pentagon's designation, made in January 2025, cited the company's ownership by a Chinese state agency, alleged activities on behalf of the People's Liberation Army, and contributions to China's military-civil fusion strategy. While this designation does not automatically prohibit COSCO vessels from entering U.S. ports, the Republicans argue that its purported espionage activities and military ties warrant the removal of preferential treatment.
The lawmakers, including House China Committee Chairman John Moolenaar, House Intelligence Committee Chairman Rep. Rick Crawford (R-Ark.), and Rep. Carlos Gimenez, chairman of the Homeland Security Subcommittee on Transportation and Maritime Security, expressed their concerns in an Oct. 14 letter. They are questioning why a company identified by the Pentagon as having military links continues to benefit from a program that lessens inspection frequency.
The Coast Guard updated its Qualship 21 eligibility rules earlier this year, expanding the conditions under which vessels can be removed, including associations with sanctioned entities. The Republicans are urging the Department of Homeland Security (DHS) to consider national security designations from the Pentagon in these eligibility decisions.
In their letter, the representatives also requested information on whether the Coast Guard received intelligence warnings about COSCO's alleged surveillance operations before they became public in September, and if such warnings influenced decisions regarding the company's privileged status. They further inquired whether COSCO's eligibility was reassessed after its Pentagon designation and if intelligence officials have identified similar risks with other Chinese or Hong Kong-based shipping operators.
The lawmakers also raised questions about the Coast Guard's capabilities to detect potential espionage aboard foreign commercial ships and whether additional inter-agency coordination is needed. Their concerns extend to potentially removing Hong Kong from the Coast Guard's list of qualified flag administrations due to Beijing's control over the territory.
COSCO has denied the allegations, stating that its equipment is used solely for legitimate commercial purposes and not for intercepting communications or gathering intelligence. The company has called the accusations unfounded.
Fox News Digital reported that the letter was copied to the director of national intelligence and the Coast Guard commandant. Attempts to reach COSCO, DHS, and the Coast Guard for comment were not immediately successful.