U.S. Defense Department Targets Chinese Military Ties
The U.S. Department of Defense (DoD) has released its annual list of companies linked to China’s military. This year, the list includes major players like COSCO Shipping and its subsidiaries, as well as the Chinese oil company Cnooc. The formal designation aims to discourage U.S. businesses from engaging with these companies. The connections between Chinese firms and the military have been widely reported, but this official action marks a significant step in addressing these concerns.
New Additions to the List
The National Defense Authorization Act for Fiscal Year 2021 mandated the annual publication of this list. Under this law, the Secretary of Defense must identify and disclose companies classified as “Chinese military companies.” The DoD published the latest notice in the Federal Register on January 7, 2024. This list includes 134 companies, with COSCO Shipping, COSCO Shipping (North America), and COSCO Shipping Finance Co. among the new entries. Cnooc also joins the ranks of companies already scrutinized for their military ties.
Historically, COSCO has faced scrutiny from the U.S. government. In 2019, during the Trump administration, COSCO’s tanker operator was briefly sanctioned for transporting Iranian oil. Although those sanctions were lifted the following year, the company remains under watch. Other notable companies on the list include China State Shipbuilding Corporation and China International Marine Corporation, which manufactures shipping containers. The inclusion of these firms highlights the ongoing concerns about the military’s influence over China’s commercial sector.
Growing Scrutiny of Chinese Industry
The scrutiny of Chinese companies is intensifying. In March 2024, five U.S. unions formed an alliance to challenge China’s shipbuilding industry through a trade complaint. Additionally, the U.S. Senate has held hearings to investigate China’s growing dominance in global shipbuilding. This pressure is mounting as China continues to expand its influence in the global orderbook for new ships.
In December 2024, a bipartisan group of U.S. Senators and House members introduced the SHIPS for America Act. This legislation aims to revitalize the U.S. merchant marine and includes provisions targeting Chinese shipping. The act proposes tariffs on Chinese goods and mandates that 10 percent of these goods be transported on American ships. While the recent action by the DoD is largely seen as symbolic, it reinforces the established ties between Chinese industry and the military. Analysts have long asserted that these connections permeate all sectors of Chinese industry, raising concerns about national security and economic competition.
