The latest investigation report from the US Congress reveals that Chinese-made cranes commonly used in ports across the United States have been embedded with technology that allows secret access by Beijing, making them vulnerable to Chinese espionage activities and sabotage.
This year-long investigation was conducted jointly by the House Committee on Homeland Security and the Special Committee on China. Members reviewed a series of documents from federal security agencies and conducted interviews on the issue, including one undisclosed classified annex.
The Wall Street Journal reported on Thursday, September 12, that lawmakers found that Chinese manufacturer Zhenhua Heavy Industries had pressured American port operators multiple times to allow them to maintain remote access paths to the machines.
Zhenhua Heavy Industries was particularly interested in remote viewing of cranes located on the US West Coast, according to the report. In a 2023 survey by The Wall Street Journal, Zhenhua cranes accounted for around 80% of shore cranes used in US ports.
Chairman of the House Committee on Homeland Security, Congressman Mark Green, said the investigation results demonstrate the “terrifying potential” of the Chinese Communist Party to “undermine critical infrastructure in the United States.”
The report revealed instances where cranes were installed with cellular modems without the knowledge of port authorities, which was beyond the scope of the contract with Zhenhua Heavy Industries. These modems “create a covert method of information collection and circumvent firewalls in a manner that could disrupt port operations,” the report stated.
The committee noted that while installing modems on cranes or manufacturing equipment to capture data and improve operations is not uncommon, the likelihood of direct conflict with China on issues such as Taiwan exacerbates the risks the US faces in such scenarios.
Zhenhua Heavy Industries communicated with congressional committees earlier this year but later informed them that it could not respond in writing to congressional inquiries without consulting the Beijing government. A US law firm hired by Zhenhua later informed the committee that Chinese law requires approval from the Beijing government to answer questions directly.
In a letter sent to the committee staff in April, Zhenhua denied responsibility for installing cellular modems on its cranes. Beijing has opposed US concerns about Zhenhua manufacturing cranes, labeling them as rooted in economic protectionism. Zhenhua Heavy Industries is a subsidiary of China Communications Construction, a major contractor for China’s Belt and Road Initiative aimed at developing infrastructure and trade links in Asia and Africa.
Zhenhua Heavy Industries did not respond to the request for comment from The Wall Street Journal. Concerns about Zhenhua cranes date back several years, but it is only recently that concerns from intelligence agencies and national security officials have become public.
Earlier this year, the Biden administration announced an investment of over $20 billion to replace foreign-made cranes with American-made ones and imposed a 25% tariff on Chinese ship cranes.
The American Association of Port Authorities stated that no security vulnerabilities have been found due to the presence of Chinese cranes in US ports and that ports are actively collaborating with the Coast Guard and federal law enforcement to mitigate any detectable risks.
Some ports believe that security concerns have been exaggerated because crane technology, including programmable logic controllers and crane navigation systems, are typically provided by non-Chinese companies. However, the congressional investigation found that cranes relying on software from Swiss company ABB and other overseas suppliers located outside China still pose supply chain security risks to US ports.
According to contracts reviewed by the committee, these third-party companies often allow “critical internal components” to be shipped to China for installation by Zhenhua Heavy Industries in their cranes. In some cases, these components may stay in China for up to 18 months before the cranes arrive at the ports.