Chinese language crane maker says it is no safety threat to U.S. ports

A Chinese language state-owned maker of heavy industrial tools, together with cranes used to maneuver cargo on and off ships, has denied that its cranes pose cybersecurity risks to the U.S.

“[Our] cranes is not going to pose a community safety threat to any port,” Shanghai Zhenhua Heavy Industries (ZPMC) said in a filing on Sunday. “These cranes are designed, manufactured, transported, put in, debugged, accepted and delivered in strict accordance with worldwide requirements,”

ZPMC’s assertion comes after The Wall Road Journal reported final week {that a} congressional investigation of China-built cargo cranes had discovered mobile modems that don’t seem to help regular operations.

That revelation has additional fueled considerations over potential nationwide safety threats posed by Chinese language-made cranes, which account for 80% of all cranes used in U.S. ports. To deal with these maritime cybersecurity dangers, the Biden administration final month stated it might invest $20 billion to boost domestic production of ship-to-shore cranes. In tandem, the U.S. Coast Guard will step up inspections of cranes and be licensed to intervene if it suspects any “malicious cyber exercise.”

Logistics dangers are provide chain dangers

Because the U.S. authorities has moved to strengthen economic security amid rising geopolitical tensions and worries over dependence on its chief competitor China, focus has turned to the logistical operations and significant infrastructure underling key provide chains. American officers concern that Chinese language-made cranes may permit Beijing to surveil commerce flows and use that perception to its benefit, in addition to probably hijack the cranes remotely and wreck provide chain havoc.

The dominance of ZPMC, which instructions some 70% of global market share for cargo cranes, is partly resulting from direct state help for the corporate. In 2018, ZPMC was identified by the Chinese government as a “single champion,” a label given to corporations which have amassed formidable management over some essential industrial node. That designation additionally grants ZPMC entry to preferential authorities insurance policies, like subsidies and tax rebates — in flip serving to it to outcompete international corporations.

In the meantime, as Washington scrutinizes ZPMC cranes, China is pushing forward with efforts to build intelligent ports which are extremely automated due to a community of linked ships, heavy tools, and units. And it’s not simply trying to construct these ports on its residence shores: In November, the Chinese language ministry of transportation called for “selling China’s related [intelligent port] applied sciences and requirements to ‘go world.’”

Which means U.S. makes an attempt to clamp down on potential China-related port safety dangers must go far past cargo cranes.