Coast Guard Orders COSCO Review After Spy Ship Claims

Three House Republicans wrote to Homeland Security Secretary Markwayne Mullin on October 14 asking his department to strip Chinese state-owned COSCO of a Coast Guard benefit that lets its ships avoid routine inspection at US ports.

The Qualship 21 program rewards foreign-flagged ships that maintain strong safety and compliance records with fewer port state control checks. As of July 15, eleven COSCO ships were enrolled. The letter was signed by John Moolenaar of the House Select Committee on China, Rick Crawford of the House Intelligence Committee, and Carlos Gimenez, who chairs the Homeland Security subcommittee on transportation and maritime security. All three want the benefit revoked.

Their concern draws on a September Reuters investigation. Two senior Trump administration officials alleged COSCO ships carry concealed equipment to intercept military communications off US coastlines and gather data on encryption technologies. The Pentagon designated COSCO a Chinese military company in January 2025.

The Coast Guard commandant ordered an immediate review on October 15. That was one day after the letter landed at DHS.

COSCO denies any surveillance role, saying its onboard technology serves navigation, communications, and emergency response. China's embassy in Washington rejected the allegations as baseless.

The lawmakers also asked DHS to explain whether the Coast Guard had prior intelligence warnings and whether it acted on them after the Pentagon designation. They asked for a review of Hong Kong's eligibility as a qualifying flag administration.