China’s largest marine transport company, Cosco Shipping Holdings Co, has been added to the United States military blacklist, according to a Federal Register filing released on Tuesday. The US Department of Defense classified Cosco as a “Chinese military company,” alleging ties to the People’s Liberation Army (PLA).
The US military blacklist is part of a broader strategy to identify and discourage companies with alleged connections to the Chinese military. Being on the list does not carry direct sanctions or penalties but discourages US businesses from engaging with these entities.
Other Chinese companies on the list include China State Shipbuilding Corp, China Shipbuilding Trading Co, and Sinotrans & CSC Holdings.
Cosco’s inclusion follows a history of scrutiny by the US government. In 2019, Cosco faced sanctions for transporting Iranian oil, although these were lifted in 2020. The latest designation comes amid heightened geopolitical tensions and increased focus on global maritime industries, exacerbated by conflicts in the Middle East and Ukraine.
In a statement issued on Tuesday, Cosco denied the allegations, emphasising that neither the company nor its subsidiaries are military entities. The company stated:
“We will engage with US authorities to clarify this matter.”
Cosco assured stakeholders that the designation does not impose sanctions or export controls and pledged that its global operations, including in the US, would continue uninterrupted. The company reaffirmed its commitment to adhering to local and international laws and maintaining compliance in all jurisdictions.
The group also highlighted its role in global trade, providing shipping and logistics services to industries such as agriculture, manufacturing, and energy.
The announcement caused Cosco’s shares to drop by 4.4% in Hong Kong on Tuesday.