Three GOP lawmakers demand stripping COSCO of U.S. port perks

Three top Republicans in the House of Representatives are pushing to strip a major Chinese shipping giant of its special perks at American ports. They claim these vessels might be spying on U.S. military communications. Fox News Digital got an exclusive letter detailing this demand. The target is COSCO, a massive logistics firm owned by the Chinese Communist Party and headquartered in Shanghai. This company has enjoyed favorable treatment under a Coast Guard program meant to reward trusted operators. However, Congress members who hawk China want those privileges gone after a September report alleging intelligence gathering on board.

On October 14, three lawmakers wrote directly to Homeland Security Secretary Markwayne Mullin. They asked him to revoke COSCO's enrollment in the Coast Guard's Quality Shipping for the 21st Century program, known as Qualship 21. This request comes even though the Pentagon officially designated the company as a Chinese military enterprise back in January 2025. As of mid-July 2026, eleven COSCO ships were still on the list. The signers include House China Committee Chairman John Moolenaar, House Intelligence Committee Chairman Rick Crawford from Arkansas, and Rep. Carlos Gimenez, who chairs the Homeland Security Subcommittee on Transportation and Maritime Security.

The report sparked by their concerns says COSCO vessels used hidden equipment to intercept military signals off American coastlines. They gathered data on encryption technologies while sailing near sensitive U.S. facilities. The Coast Guard created this program to let ships with strong safety records skip routine inspections. Yet the lawmakers argue that alleged espionage and ties to China's military make it a bad fit for preferential treatment. Senior U.S. officials have fueled these fears by suggesting commercial ships could act as intelligence platforms near military bases.

COSCO has firmly rejected these claims, calling them completely unfounded. The company insists its onboard gear is used only for legitimate trade and navigation. They state no equipment was used to spy or intercept communications. COSCO remains one of the world's largest shipping companies with a fleet on global routes that serve American ports. The Pentagon placed it on Section 1260H list because of its government ownership and activities allegedly done for the People's Liberation Army. This strategy seeks to use civilian tech for military goals.

The designation does not ban ships from entering U.S. ports automatically. But lawmakers are asking why a firm with military ties should keep benefiting from reduced inspections. The Coast Guard did update Qualship 21 rules earlier this year, allowing removal of vessels linked to sanctioned entities. These changes expand the reasons a ship could lose its trusted status.

Lawmakers are pushing the Department of Homeland Security on a critical question: should national security labels from the Pentagon count when determining who gets access? In a letter first seen by Fox News Digital, these officials told DHS to cancel COSCO's enrollment right now and block any future renewals. They also want stricter checks on other shipping firms with links to the Chinese Communist Party or the Chinese military.

The inquiry goes deeper into the past. The lawmakers are asking if the Coast Guard had intelligence warnings about COSCO's alleged spying before those claims broke in September. Did officials use that intel when deciding whether to keep the company's special status? They want to know specifically if the Coast Guard re-evaluated COSCO after the Pentagon flagged them and if intelligence officers have spotted similar dangers with other ships based in China or Hong Kong.

The scope widens beyond just one carrier. Lawmakers are worried about how the Coast Guard hunts for spies on commercial boats already sailing U.S. waters. Did agents board more COSCO ships recently? Have investigators looked into crew members who might be gathering secrets? Are they reviewing old shipping routes to spot weird patterns that could signal surveillance work?

One big question remains unanswered: does the Coast Guard have enough legal power to stop suspected spying on foreign commercial vessels right now, or do they need to coordinate more with other federal agencies? The letter even suggests taking Hong Kong off the list of approved flag nations because Beijing controls the territory. This message went straight to the director of national intelligence and the Coast Guard commandant. Fox News Digital asked COSCO, DHS, and the Coast Guard for a response but got no reply by press time.