Chinese Carrier COSCO Collects Intelligence for Beijing Using Hidden Equipment

Chinese state-owned shipping company COSCO may have used covert equipment on its commercial vessels to collect data on behalf of Beijing.

Reuters reported this on September 1, citing two senior officials in the U.S. presidential administration.

According to the U.S. officials, COSCO has been cooperating with Beijing on intelligence gathering for decades. Equipment installed on the vessels allegedly allows them to intercept signals from military ships and aircraft operating near the coasts of various countries, including the United States.

The equipment is not used for ordinary communications. Instead, it consists of sophisticated electronic intelligence systems designed to gather information about military communications technology and the development of encryption systems.

According to U.S. officials, COSCO also helps Beijing monitor ships, aircraft, and strategically important maritime routes across Europe, North America, and Asia.

The data could support maritime intelligence, early detection of foreign military movements, and strengthening China’s position in territorial disputes.

U.S. officials did not disclose the type of equipment involved. They only said it consists of specialized platforms designed to collect signals, rather than standard communications equipment.

The Chinese Embassy in the United States called the allegations baseless and said that Beijing does not require companies to collect intelligence abroad in violation of local laws.

COSCO did not respond to Reuters’ request for comment.

In January 2025, the Pentagon added COSCO to its list of Chinese companies linked to the military. However, this did not result in formal sanctions against the company.

In April 2025, the U.S. Naval War College said in a report that China’s People’s Liberation Army likely uses commercial and fishing fleets for intelligence gathering and surveillance.

China is also believed to use floating platforms for intelligence operations. One such platform was previously spotted near Scarborough Shoal in the Philippines’ exclusive economic zone, raising concerns in Manila.