Officials: Chinese Shipping Giant Spied on U.S. Military

China's state-owned shipping giant COSCO hides signals-intelligence equipment aboard its commercial vessels and uses it to intercept military communications off the coasts of the United States and other countries, two senior Trump administration officials told Reuters and U.S. News and World Report in reports published September 1, 2026.

The officials, who spoke anonymously to describe a U.S. intelligence assessment, said COSCO has run an intelligence-gathering partnership with Beijing going back decades.

They said the program lets China collect communications from ships and aircraft across North America, Europe and Asia.

COSCO did not respond to requests for comment. China's embassy in Washington denied the allegations.

What the officials say the gear does

One official said the hardware installed on the ships is meant to help Beijing learn about "military communications technologies and encryption developments," and to monitor the maritime routes that carry global trade and military traffic.

The officials declined to describe the specific equipment, but characterized the systems as "sophisticated signals intelligence collection" platforms rather than ordinary maritime navigation gear.

They said China uses what it collects to bolster its position in maritime territorial disputes, to conduct reconnaissance at sea, and to get early warning about foreign military forces.