House Republicans Demand Action Against COSCO Over Espionage Allegations
Three prominent House Republicans are urging the Department of Homeland Security (DHS) to revoke the special privileges granted to COSCO, a Chinese shipping company, amid allegations that its vessels are spying on U.S. military communications. This demand follows a report indicating that COSCO's ships may be equipped with sophisticated technology to intercept military communications.
COSCO, which is owned by the Chinese Communist Party and based in Shanghai, has benefited from the Coast Guard's Quality Shipping for the 21st Century program, known as Qualship 21. This program is designed to reward trusted commercial operators with fewer inspections when entering U.S. ports. However, the lawmakers are questioning why COSCO, designated as a military company by the Pentagon, continues to enjoy these privileges.
In a letter dated October 14, House China Committee Chairman John Moolenaar, House Intelligence Committee Chairman Rick Crawford, and Rep. Carlos Gimenez, who chairs the Homeland Security Subcommittee on Transportation and Maritime Security, expressed their concerns to Homeland Security Secretary Markwayne Mullin. They highlighted that as of July 15, 2026, there were 11 COSCO vessels enrolled in the Qualship 21 program despite the Pentagon's designation.
The allegations suggest that COSCO vessels have used concealed equipment to gather intelligence about U.S. military encryption technologies while operating near American coastlines. The lawmakers argue that these espionage activities raise serious questions about the appropriateness of COSCO's participation in the program designed for compliant vessels.
The Pentagon added COSCO to its Section 1260H list of Chinese military companies in January 2025, citing its ownership by a Chinese state agency and its activities on behalf of the People's Liberation Army. While this designation does not automatically bar COSCO vessels from U.S. ports, the lawmakers are pressing for a reevaluation of the company's eligibility for the Qualship 21 program, especially in light of its alleged ties to espionage.
Coast Guard's Qualship 21 Program Under Scrutiny
The Coast Guard recently updated the eligibility rules for the Qualship 21 program, allowing for the removal of vessels associated with sanctioned entities. The lawmakers are questioning whether the Pentagon's national security designations should also be considered in these eligibility decisions. They are also seeking clarity on whether the Coast Guard received intelligence warnings regarding COSCO's alleged surveillance activities before these allegations became public.
In their letter, the lawmakers are demanding that DHS revoke COSCO's enrollment in the program, refuse future renewals, and increase scrutiny of other shipping companies with links to the Chinese Communist Party and military. They are also inquiring about the Coast Guard's actions to detect potential espionage aboard commercial vessels operating in U.S. waters.
Filed & Cleared
The inquiry extends beyond COSCO, as the lawmakers suggest that Hong Kong should be removed from the Coast Guard's list of qualified flag administrations due to concerns about Beijing's influence over the territory. They have copied their letter to the director of national intelligence and the Coast Guard commandant, emphasizing the seriousness of their concerns regarding national security.
As the situation develops, the implications of these allegations and the response from U.S. authorities will be closely monitored, particularly regarding the balance between trade and national security in the context of U.S.-China relations.
