COSCO Shipping Lines has responded to its recent inclusion on a United States Department of Defence (DoD) “blacklist”.
On 7 January, DoD released a list of “Entities Identified as Chinese Military Companies Operating in the United States”, featuring the names of companies the US views as having affiliations with the Chinese military.
“Updating the [list] of “Chinese military companies” is an important continuing effort in highlighting and countering the People’s Republic of China’s (PRC) Military-Civil Fusion strategy,” the DoD said in a statement on the list.
“The PRC’s Military-Civil Fusion strategy supports the modernization goals of the People’s Liberation Army (PLA) by ensuring it can acquire advanced technologies and expertise developed by PRC companies, universities, and research programs that appear to be civilian entities.
“The Department will update the list with additional entities as appropriate.”
COSCO Shipping, which is state-owned by the Chinese government, has since released a statement regarding its inclusion on the list.
“COSCO SHIPPING and its subsidiaries have consistently adhered to local laws and regulations, maintaining strict compliance in all international operations,” it said.
“We remain committed to facilitating global trade and providing high-quality commercial shipping and logistics services to clients worldwide, including agricultural producers, manufacturers, energy firms, retailers, and exporters in the United States.
“We emphasize that none of the aforementioned companies are ‘Chinese military companies.’ This designation does not impose sanctions or export controls, and our global operations will continue uninterrupted.”
The shipping line said it will engage with US authorities to “clarify this matter”.
Inclusion on the list of alleged “Chinese military companies” does not carry specific penalties, but rather its purpose is to discourage US businesses from collaboration.
The Pentagon however can reportedly not do business with companies that are designated to be supporting the Chinese military.
Other maritime-related companies that were named on the blacklist included China State Shipbuilding Corporation (CSSC), and CSSC Offshore & Marine Engineering, which grouped the Guangzhou Wenchong Shipyard Co. and Huacheng (Tianjin) Ship Leasing.
