In a move that highlights escalating tensions between the United States and China, the US Department of Defense has included COSCO Shipping and several other prominent Chinese shipping companies in its annual list of entities linked to the People's Liberation Army (PLA).
This designation is part of a broader effort by the US to discourage American businesses from engaging with companies perceived to support China's military.
COSCO, one of the world's largest shipping companies, has been placed on the list alongside its subsidiaries, including COSCO Shipping (North America) and COSCO Shipping Finance Co.
Other notable additions include China International Marine Containers (CIMC), a major container manufacturer, and China State Shipbuilding Corporation (CSSC), which is involved in constructing vessels for the Chinese Navy.
The listing, which includes a total of 134 Chinese companies, does not impose direct sanctions but serves as a deterrent for US firms to avoid business dealings with these entities.
The move is seen as part of the US strategy to counter , which integrates civilian and military technologies and resources.
COSCO Shipping has responded by stating that its inclusion on the list will not affect its global operations. The company emphasized its adherence to local laws and regulations and expressed its intention to engage with US authorities to clarify the situation.
The Chinese government has also criticized the move, accusing the US of discriminatory practices and calling for fair treatment of Chinese companies.
The news has led to a slight decline in COSCO's share price, reflecting concerns about potential future restrictions on US business dealings.
However, as there are currently no sanctions or export controls associated with the listing, COSCO's operations are expected to continue without major disruptions.
This development marks another step in the ongoing tensions between the US and China, with implications for global trade and military relations. As the situation evolves, it remains to be seen how these listings will affect the broader economic and geopolitical landscape.
