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. CHINA ‘WIRETAPPED RED SEA’ WITH SPY HUB 6 MILES FROM US BASE: EX PENTAGON OFFICIAL WARNS 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. WALL STREET BANKS HELPED CHINESE MILITARY-LINKED FIRM RAISE BILLIONS DESPITE RED FLAGS, LAWMAKERS FIND 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.
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