U.S. House of Representatives Committee on Homeland Security
09/16/2024 | Press release | Distributed by Public on 09/16/2024 07:20
What They Are Saying: Joint Investigation Finds Potential Chinese Espionage Threats to U.S. Ports
WASHINGTON, D.C. - This week, the House Committee on Homeland Security and the Select Committee on the Chinese Communist Party released a joint investigative report exposing the rising threat to U.S. economic and homeland security posed by the Chinese Communist Party (CCP). Read the full report here.
The report reveals how Shanghai Zhenhua Heavy Industries (ZPMC)--a company owned and operated in the People's Republic of China (PRC)--dominates the global market share of ship-to-shore (STS) port cranes, and how China's broader maritime infrastructure dominance creates significant cybersecurity and national security vulnerabilities for both the United States and our allies. ZPMC currently accounts for nearly 80 percent of the STS cranes in operation at U.S. ports. The report also outlines strategies for how the United States can lead the way in addressing the risks posed by the CCP's maritime activities and promote a more secure global maritime infrastructure.
Here's what the media is saying about the report:
Fox News via America's Newsroom
Fox Business via Mornings with Maria
Dustin Volz via The Wall Street Journal
"Chinese cargo cranes used at U.S. seaports around the country have embedded technology that could allow Beijing to covertly gain access to the machines, making them vulnerable to espionage and disruption, according to a yearlong congressional investigation.
"The probe, conducted jointly by the Republican majorities of the House Homeland Security Committee and Select Committee on the Chinese Communist Party, found that the China-based manufacturer of the cranes, ZPMC, had at times pressured port operators to allow the company to maintain remote access.
"'Some ports insist on securing their assets, but many cave to the pressure,' the report said, adding that ZPMC had shown particular interest in requesting remote access to its cranes located on the West Coast. Pushing back on ZPMC's requests, it said, is 'difficult for customers who are looking to get the lowest price or guarantee a robust warranty policy.'
"Though ostensibly done for diagnostic and maintenance purposes, the committees said the cellular modems built into the cranes could potentially allow access by the Chinese government due to the country's national-security laws that mandate companies cooperate with state intelligence agencies. In some cases, the investigation uncovered instances where cranes came with cellular modems installed without the knowledge of port authorities and done so beyond the scope of contracts with ZPMC."
Caitlin Doornbos via New York Post
"A Chinese company installed intelligence gathering equipment on cranes used at seaports across the US that could allow Beijing to spy on Americans and cripple key infrastructure, according to a new congressional report.
"The Republican majorities on the House Select Committee on the Chinese Communist Party and House Homeland Security Committee found that the Shanghai-based, state-owned ZPMC engineering company had pressured American port authorities to allow remote access to its cranes, 'with a particular focus on those located on the West Coast.'
"'If granted, this access could potentially be extended to other [People's Republican of China] government entities, posing a significant risk due to the PRC's national security laws that mandate cooperation with state intelligence agencies,' adds the report, the outcome of a yearlong investigation."
"'ZPMC and other [Chinese state-owned enterprises] are not contractually barred from installing backdoors into equipment or modifying technology in ways that could allow unauthorized access or remote control, enabling them to compromise sensitive data or disrupt operations within the U.S. maritime sector at a later time,' the report said.
"Chinese data collection of shipping and logistical information is part of the country's 'Going Out' strategy first articulated by Chinese premier Jiang Zemin in the 1990s, lawmakers said. That strategy encompasses the construction of new ports in the Indian Ocean, as well as major infrastructure investments in Africa, and trade and commercial initiatives across the Asian continent. Lawmakers described the policy as 'marking a pivotal shift in international economic dynamics.'"
"Chinese-made cranes in U.S. ports could pose a serious threat to national security due to cyber vulnerabilities that could allow them to be remotely hijacked - and port authorities are not postured to address these threats, a report out Thursday from two House committees found.
"The report outlining the concerns is a formalization of previous findings from the committees, and adds pressure on U.S. ports to do business with different crane manufacturers - a difficult task when one Chinese company dominates the market."
Leif Le Mahieu via The Daily Wire
"The U.S. maritime industry is 'dangerously' reliant on China, potentially opening the door for the Chinese Communist Party to gain access to critical American infrastructure, according to a new report from House Republicans.
"In a report released Thursday, House Republicans on the Committee on Homeland Security and Select Committee on the CCP said that the use of Chinese manufactured equipment and technology at American ports jeopardized national security. The report specifically focused on Chinese-government owned ZPMC, a major manufacturer of cranes used at ports across the country.
"'The evidence gathered during our joint investigation indicates that ZPMC could, if desired, serve as a Trojan horse capable of helping the CCP and the PRC military exploit and manipulate U.S. maritime equipment and technology at their request,' the committee said in a statement. 'This vulnerability in our critical infrastructure has the potential to affect Americans from coast to coast.'"
Martin Matishak via The Record
"The 51-page, Republican-led study, conducted by the House Select Committee on China and the House Homeland Security Committee, said 'these cellular modems, not requested by U.S. ports or included in contracts, were intended for the collection of usage data on certain equipment. This constitutes a significant backdoor security vulnerability that undermines the integrity of port operations.'
"In addition, contracts reviewed by lawmakers 'revealed that many agreements allowed critical internal components from third party contractors to be sent' to Chinese manufacturer ZPMC for installation."
Jake Smith via The Daily Caller
"The U.S. is 'dangerously reliant' on Chinese-provided cargo cranes at American seaports located throughout the country, according to the findings of a congressional probe released Thursday.
"It's not uncommon for seaport cranes to have technology embedded that provides tracking or diagnostic information, but the congressional investigation found that the cranes in question - made by company ZPMC - could be accessed by the Chinese Communist Party (CCP), given that the country's laws mandate that the company comply with the government. The cranes, made by Chinese company ZPMC, make up roughly 80% of the seaport cranes across the U.S."
David Dimolfetta via NextGov/FCW
"A year-long probe led by GOP members of two House panels found that numerous seaports around the U.S. contain technology originating from Chinese manufacturers that could enable espionage and sabotage.
"The study conducted by lawmakers and staff on the House Homeland Security Committee and Select Committee on the Chinese Communist Party said that it was an 'open secret' around port operators that Chinese crane manufacturer Shanghai Zhenhua Heavy Industries Company Limited - or ZPMC - would 'pressure' them to provide remote access into the system on grounds that it can help with equipment monitoring and diagnostics."
Terrance Kible via Just the News
"The GOP-led House Committee on Homeland Security warned Thursday that China's dominance in the global maritime shipping industry 'creates significant cybersecurity and national security vulnerabilities' for the U.S. and its allies.
"The committee announced the findings in a summary of the report in which it also said Shanghai Zenhua Heavy Industries, a Chinese-owned and -operated company, 'dominates the global market share of ship-to-shore (STS) port cranes.'
"The full 52-page report goes into further detail on how China's 'broader maritime infrastructure dominance creates significant cybersecurity and national security vulnerabilities for both the United States and our allies.'"
Ionut Arghire via Security Week
"A joint report released this week by the two committees focuses on Shanghai Zhenhua Heavy Industries (ZPMC), a company owned and controlled by the People's Republic of China (PRC), which accounts for roughly 80% of the ship-to-shore (STS) port cranes operational in the US.
"ZPMC dominates the global market share of STS cranes, adding to the PRC's broader maritime infrastructure dominance and creating cybersecurity vulnerabilities and national security risks for the US and its allies, the report shows."
Anna Ribeiro via Industrial Cyber
"The U.S. House Committee on Homeland Security and the House Select Committee on the Strategic Competition between the United States and the Chinese Communist Party released a joint investigative report on Thursday, highlighting a growing threat to U.S. economic and homeland security from the Chinese Communist Party (CCP). The report outlines strategies for how the U.S. can address the risks posed by the CCP's maritime activities and promote secure global maritime infrastructure.
"The probe centered on cybersecurity risks, foreign intelligence threats, and supply chain vulnerabilities at U.S. ports. It specifically examined the widespread use of foreign equipment and technology, focusing on the risks, threats, and vulnerabilities associated with ship-to-shore cranes (STS) and related components produced, manufactured, assembled, or installed by Shanghai Zhenhua Heavy Industry Co., Ltd. (ZPMC), a state-owned enterprise controlled by the Chinese government."
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