COSCO Rejects US Intelligence Allegations as Tensions Rise Ahead of Xi-Trump Summit

China's state-owned shipping giant COSCO Shipping has strongly denied reports that its container vessels are equipped with concealed signals intelligence gear to monitor foreign military communications. The denial follows a September 1 Reuters exclusive citing two senior Trump administration officials who described a decades-long partnership between COSCO and Beijing for collecting signals from vessels and aircraft across Europe, North America, and Asia. The officials claimed the equipment targets data on military communications technologies, encryption, and maritime routes critical for both trade and defense. COSCO responded on September 4, stating that all onboard equipment serves only legitimate commercial purposes such as navigation safety and emergency response, calling the allegations "totally unfounded" and reserving the right to legal action. China's embassy in Washington echoed the rejection, asserting Beijing never requires companies to collect intelligence abroad in violation of local laws. The claims emerge weeks before an anticipated September 24 meeting between President Xi Jinping and President Trump, amid broader US concerns over Chinese commercial assets. COSCO was added to the Pentagon's list of military-linked companies in January 2025, and a April 2025 US Naval War College report highlighted the PLA's potential use of commercial shipping fleets for intelligence purposes. Industry outlets including Lloyd's List and Maritime Executive have covered the dispute, noting prior US scrutiny of COSCO's port operations dating back decades.