Fears of China spying on US military prompt GOP hawks to demand retaliation against the shipping giant
FIRST ON FOX: Three top House Republicans are demanding a Chinese shipping giant be stripped of special privileges at American ports over concerns the vessels are allegedly spying on U.S. military communications, according to a letter exclusively obtained by Fox News Digital.
COSCO, a shipping and logistics company owned by the Chinese Communist Party (CCP) and based in Shanghai, has received favorable treatment under a Coast Guard program designed to reward trusted commercial operators. But China hawks in Congress want to revoke those privileges following a September report that the vessels are being used to gather intelligence.
In an Oct. 14 letter, three top Republican lawmakers identified that as of July 15, 2026, there were 11 COSCO vessels listed in the Coast Guard's Quality Shipping for the 21st Century program, known as Qualship 21 — despite the Pentagon designating them as a Chinese military company.
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, are pressing Homeland Security Secretary Markwayne Mullin to revoke COSCO vessels' enrollment in the Coast Guard's program.
It follows a September's reporting that COSCO vessels used sophisticated, concealed equipment to intercept military communications and gather intelligence about encryption technologies off American coastlines.
The Coast Guard program was created to allow vessels with strong safety and compliance records to undergo fewer routine inspections when entering U.S. ports. But the lawmakers argue in their letter that COSCO's alleged espionage activities and ties to China's military raise serious questions about why its ships have qualified for preferential treatment.
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The allegations, attributed to senior U.S. officials, have fueled concerns that Chinese commercial vessels could serve as intelligence-gathering platforms while operating near sensitive American military facilities.
COSCO has denied the allegations, calling them unfounded and maintaining that its onboard communications and navigation equipment is used exclusively for legitimate commercial purposes. The company has said none of its equipment was used to intercept military communications or gather intelligence.
COSCO is one of the world's largest shipping companies and is owned by the Chinese government. Its sprawling commercial fleet operates along major global trade routes, including routes serving American ports.
The Pentagon added COSCO to its Section 1260H list of Chinese military companies in January 2025, citing its ownership by a Chinese state agency, activities allegedly conducted on behalf of the People's Liberation Army and contributions to Beijing's military-civil fusion strategy, which seeks to harness civilian industries and technologies for military purposes.
The designation does not automatically bar COSCO vessels from entering American ports. But the lawmakers are questioning why a company identified by the Pentagon as having ties to China's military should continue benefiting from a Coast Guard program that reduces inspection frequency.
The Coast Guard updated Qualship 21 eligibility rules earlier this year, expanding the circumstances under which vessels could be removed from the program, including certain associations with sanctioned entities. The lawmakers are now pressing DHS on whether Pentagon national security designations should also factor into eligibility decisions.
In the letter first obtained by Fox News Digital, the lawmakers urged DHS to revoke COSCO vessels' enrollment, refuse future renewals and increase scrutiny of other shipping companies with ties to the CCP and Chinese military.
They are also demanding to know whether the Coast Guard received intelligence warnings about COSCO's alleged surveillance operations before the allegations became public in September — and whether those warnings were considered when deciding if its vessels should retain their privileged status.
The lawmakers specifically questioned whether the Coast Guard reviewed COSCO's eligibility following its Pentagon designation and whether intelligence officials have identified similar risks involving other Chinese or Hong Kong-based shipping operators.
Their concerns extend to what the Coast Guard is doing to detect potential espionage aboard commercial vessels already operating in American waters.
The letter questions whether authorities have conducted additional boardings of COSCO ships, investigated crew members potentially involved in intelligence collection or examined historical shipping routes for unusual movements that could indicate surveillance activities.
The lawmakers also questioned whether the Coast Guard has sufficient legal authority to counter suspected intelligence operations aboard foreign commercial ships, or whether additional coordination with other federal agencies is necessary.
The inquiry reaches beyond COSCO. The lawmakers raised the possibility of removing Hong Kong from the Coast Guard's list of qualified flag administrations, citing concerns about Beijing's control over the territory.
The letter was copied to the director of national intelligence and the Coast Guard commandant.
Fox News Digital reached out to COSCO, DHS and the Coast Guard for comment but did not hear back at time of publication.