In a move that alarms China, the United States has blacklisted China’s largest shipping company, Cosco Shipping Holdings, and two major shipbuilding companies over alleged ties to the People’s Liberation Army (PLA), Bloomberg reports. Published in.
At the center of the controversy is shipping giant Cosco Shipping Holdings, which is currently blacklisted by the U.S. Federal Register.
The blacklisting extends beyond shipping companies to include China’s high-tech and energy sectors, with major companies such as Tencent Holdings, Contemporary Amperex Technology and state-owned oil giant Qnook targeted by Washington. It has become.
Notably, Cosco and Cnuk are not immune to US sanctions. In 2019, Cosco was fined for shipping Iranian crude oil, but the penalties were lifted in 2020. Meanwhile, Cnouk, one of the first Chinese state-owned companies sanctioned by the US government, was found on the Pentagon’s blacklist in 2021.
A 2020 report from the Center for Strategic and International Studies identified COSCO as “the maritime logistics arm of the People’s Liberation Army,” highlighting its logistics support for PLA Navy operations in the Gulf of Aden since 2008.
While the blacklist does not impose immediate or direct penalties, it will act as a deterrent for U.S. companies, preventing them from partnering with Chinese companies and intensifying ongoing geopolitical competition.
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Interestingly, Cnooc still maintains a presence in U.S. energy projects, including shale and deepwater ventures and exploration blocks in the Gulf of Mexico, according to Bloomberg Intelligence.
The move signals a broader focus on maritime transport and shipbuilding amid growing concerns about China’s maritime militia, often referred to as a “shadow force.” The strategic use of military-backed civilian fleets has heightened tensions, and China has come under increased scrutiny from the United States, which is building up covert naval capabilities.
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These developments coincide with President Donald Trump’s return to the White House, and maritime competition between the United States and China appears to be intensifying.
Trojan ship scenario
These recent actions demonstrate growing vigilance over China’s civil-military fusion strategy.
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In August 2024, the 366-meter-long giant container ship “Cosco Sakura” will enter Norfolk, Virginia, giving an astonishing view of Norfolk Naval Base, the world’s largest naval base where important U.S. assets such as nuclear power are stored. It passed nearby and became a hot topic. submarines and aircraft carriers.
The ship can carry more than 14,000 shipping containers and is owned by COSCO Shipping, a Chinese state-owned company. Built in 2018 by Jiangnan Shipyard, the same facility responsible for building PLA Navy warships and China’s newest aircraft carrier, the Fujian, Sakura embodies China’s civil-military fusion policy.
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Thomas Shugart, an adjunct senior fellow at the Center for a New American Security (CNAS) and a former U.S. Navy submarine officer, highlighted the risks and strategic vulnerabilities in a series of posts. His analysis of the ship’s potential as a Trojan horse was even more frightening.
“If 10% of those containers were used for munitions, we could deploy, for example, 144 cruise missiles and 252 quadcopters, which would be more than enough to destroy all the warships in Norfolk; We can reach land targets across the Middle East, in the Atlantic Ocean, and far beyond Washington, D.C.,” Shugart said.
This scenario highlights growing concerns about China’s military-civil fusion policy, which systematically integrates civilian industry and military operations.
COSCO Shipping Lines Ltd, part of the state-owned COSCO Group, is a prime example of this strategy. As one of the world’s largest shipping companies, the company works closely with the People’s Liberation Army and regularly supports naval operations and logistics.
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China’s maritime shadow forces
A report titled “Shadow Forces: What’s Inside the People’s Liberation Army Naval Reserve,” released in December 2024 by the China Maritime Research Institute at the U.S. Naval War College, sheds light on this growing concern. are.
According to the report, the People’s Liberation Army (PLA) maritime “reserve force” consists of two main components: the PLA Naval Reserve and the Maritime Militia.
Together, they serve as strategic assets, enhancing China’s naval reach and operational flexibility. This reserve force will enable China to expand its maritime influence and sustain long-term naval operations, effectively strengthening its power projection on the world stage.
A) People’s Liberation Army Naval Reserve
Although the PLAN reserve remains a largely obscure aspect of China’s maritime strategy, it is considered a key element in strengthening China’s naval operations. Although less publicly visible than the regular People’s Liberation Army Navy (PLAN), this reserve force is designed to augment and support the People’s Liberation Army Navy’s personnel and advance the nation’s strategic maritime objectives.
The PLAN Reserve is comprised primarily of military veterans and has deep operational capabilities. This veteran-centered structure allows the Reserve to quickly mobilize skilled personnel to missions when needed.
The reservists of the People’s Liberation Army of China are distinguished by their unique role and appearance. They wear People’s Liberation Army uniforms while on duty, symbolizing their integration into China’s naval strategy.
Despite being integral to China’s naval operations, reservists have yet to be observed directly involved in real-world military operations. Instead, its role is primarily auxiliary, serving as a force multiplier for active-duty personnel and a flexible strategic asset for a variety of missions.
B) maritime militia
In 2021, the PLA’s amphibious forces conducted a series of maritime landing exercises using a 10,000-ton civilian ferry. According to China Central Television (CCTV), this marked a significant shift from the smaller civilian vessels employed previously.
Observers said the changes strengthen China’s ability to transport large numbers of troops for amphibious landings and signal a new approach to military logistics.
The People’s Armed Maritime Militia (PAFMM) is a key element of China’s “gray zone” strategy, operating between peace and war through calculated coercion.
The ambiguous status of militias, which lack formal military armaments, gives China flexibility to deny or claim responsibility for its actions depending on political or military circumstances. This dual-use strategy allows China to assert its maritime claims while maintaining plausible deniability.
The People’s Liberation Army has long indicated its intention to use civilian shipping in a potential cross-strait invasion of Taiwan. The tactic is part of a broader strategy that has raised concerns in the United States, which believes Chinese maritime militias violate international law, particularly when it comes to enforcing illegal maritime claims. But the militia’s reach could extend far beyond Taiwan and the South China Sea.
China’s maritime militias have received significant attention over the past decade for their role in supporting China’s territorial claims, particularly in the South China Sea and East China Sea.
Research shows that civilian vessels are increasingly being used to project military power beyond East Asia, and large militia fishing fleets serve as China’s eyes and ears in its vast maritime theater.
Conquering the seas through industry
China’s maritime influence far exceeds its military power. The country has established an iron grip on the world’s shipping infrastructure, controlling seven of the world’s 10 busiest ports and producing more than 95% of the world’s shipping containers.
In 2024, China’s shipbuilding sector reached new heights, completing 42.3 million deadweight tons of commercial ships, more than half of the world’s total production.
This industry dominance, coupled with recent moves to restrict exports of drone parts to the United States and Europe, signals China’s growing influence over global supply chains. Ninety percent of world trade takes place by sea, and China’s maritime strategy places the country at the center of global trade.
A combination of industrial power, military capability, and strategic ambiguity created a maritime power. With tensions rising and President-elect Donald Trump’s return to the White House looming, maritime competition between the United States and China is expected to further intensify.
Shubhangi Palve is a defense and aerospace journalist. Before joining EuroAsian Times, he worked at ET Prime. In this position, she focused on defense strategy and the defense sector from a financial perspective. She has over 15 years of extensive experience in the media industry spanning print, electronic and online domains. The author can be contacted at shubhapalve (at) gmail.com.
