Skip to content

News

WTAS: Joint Investigation into CCP-Backed Company Supplying Cranes to U.S. Ports Reveals Shocking Findings

March 12, 2024

WASHINGTON, D.C. — Last week, House Homeland Security Chairman Mark E. Green (R-TN), Subcommittee on Transportation and Maritime Security Chairman Carlos Gimenez (R-FL), and House Select Committee on the Chinese Communist Party Chairman Mike Gallagher (R-WI) sent a letter to Shanghai Zhenhua Heavy Industries (ZPMC), a company with close ties to the Chinese Communist Party (CCP), demanding answers following numerous findings by the Committees’ ongoing joint investigation into critical infrastructure security vulnerabilities at U.S. ports. The Chairmen were joined on the letter by Subcommittee on Counterterrorism, Law Enforcement, and Intelligence Chairman August Pfluger (R-TX) and Select Committee on the Chinese Communist Party members, Rep. Dusty Johnson (R-SD) and Rep. Michelle Steele (R-CA).

The letter details concerns related to cellular modems discovered on ZPMC ship-to-shore (STS) crane components at a U.S. seaport and a cellular modem discovered in another U.S. seaport’s server room that houses STS cranes’ firewall and networking equipment. These communication devices were not part of the equipment contracts, nor could port officials determine why the components had been installed. The letter also requests information regarding ZPMC’s engagement with the CCP and any requests from the CCP to ZPMC. The Committees are also investigating the Swiss company ABB, as many of the operational components manufactured by ABB are shipped to the People’s Republic of China (PRC), where they are stored for several months and later installed onto U.S.-bound port equipment by ZPMC engineers.

Here’s what the media is saying about the investigation: 

The Wall Street Journal via Dustin Volz:
 
“A congressional probe of Chinese-built cargo cranes deployed at ports throughout the U.S. has found communications equipment that doesn’t appear to support normal operations, fueling concerns that the foreign machines may pose a covert national-security risk.
 
“The installed components in some cases include cellular modems, according to congressional aides and documents, that could be remotely accessed.
 
“The discovery of the modems by lawmakers, which hasn’t been previously reported, has added to concerns in Washington about port security and China. The Pentagon and intelligence officials at other agencies in the Biden administration have grown increasingly alarmed by the potential threat of disruption and espionage presented by the giant cranes built by ZPMC, a China-based manufacturer that accounts for nearly 80% of ship-to-shore cranes in use at U.S. ports. 
 
“The Chinese government ‘is looking for every opportunity to collect valuable intelligence and position themselves to exploit vulnerabilities by systematically burrowing into America’s critical infrastructure, including in the maritime sector,’ said Rep. Mark Green (R., Tenn.), chairman of the House Homeland Security Committee, which has been investigating Chinese maritime security threats. ‘The United States has clearly overlooked this threat for far too long.’”

Image

CNN via Sean Lyngaas:

“The investigation by the House Committee on Homeland Security and House select committee on China focused on the more than 200 Chinese-made cranes installed at US ports and related facilities. It comes amid heightened US-China tensions over national security and as the Coast Guard last month ordered the ports to better secure the Chinese-made cranes.

“House lawmakers found that the equipment installed on the cranes — cellular modems that can be used for remote communication — were not documented in any contract between US ports and Chinese crane maker ZPMC, a congressional aide familiar with the investigation told CNN. When US port personnel went to China to inspect the cranes, the modems were already installed, the aide said

“The modems were found ‘on more than one occasion’ on the ZPMC cranes, the aide said.

“‘Our Committees’ investigation found vulnerabilities in cranes at U.S. ports that could allow the CCP [Chinese Communist Party] to not only undercut trade competitors through espionage, but disrupt supply chains and the movement of cargo, devastating our nation’s economy,’ Rep. Mark Green, the Republican chair of the House Homeland Security Committee, said in a statement to CNN.

“‘Without a swift sea-change, we will continue to gift the CCP with an easy means of infiltrating our critical infrastructure on their quest for global dominance.’”

Image

The New York Post via Ariel Zilber:
 
“The House Homeland Security Committee said that it has discovered cellular modems that were installed in cranes and which can be remotely accessed by hostile powers, according to The Wall Street Journal.
 
“The committee’s discovery has fueled concerns in the Biden administration that cranes built by a Chinese firm, Shanghai Zhenhua Heavy Industries (ZPMC), could potentially be used to spy on US ports.
 
“More than 12 cellular modems were found in Chinese-made cranes that were relied upon in several US ports, according to the Journal.
 
“While some of the modems were used for operational functions such as monitoring and tracking maintenance remotely, others were installed despite the fact that the ports in which they were being used hadn’t requested them.”

Image

Newsmax via Charlie McCarthy:
 
“A joint ongoing investigation by several House committees has increased spying concerns after discovering that Chinese-built cargo cranes deployed at U.S. ports contained unexpected communications equipment.
 
“House Homeland Security Committee Chair Mark E. Green, R-Tenn., Transportation and Maritime Security Subcommittee Chair Carlos Gimenez, R-Fla., and House Select Committee on the Chinese Communist Party Committee Chair Mike Gallagher, R-Wis., are troubled that every U.S. seaport with Shanghai Zhenhua Heavy Industries cranes has been, or could be, at risk of being compromised by the Chinese Communist Party.
 
“The three chairman sent a Feb. 29 letter to Shanghai Zhenhua demanding answers regarding numerous findings of the committees’ joint investigation.
 
‘“In briefings with the committees, U.S. federal law enforcement agencies have confirmed PRC state-owned enterprises are aggressively attempting to generate undue economic influence and establish a strategic presence at certain maritime ports around the country,’ the chairmen wrote regarding the People’s Republic of China.
 
“’The United States is alarmed by mounting evidence that the PRC is solidifying its presence and exerting influence over an industry critically important to the U.S. economy.’
 
“The letter details concerns related to cellular modems discovered on ship-to-shore crane components at a U.S. seaport and a cellular modem discovered in another U.S. seaport’s server room that houses the cranes’ firewall and networking equipment.”

Image

Washington Examiner via Misty Severi:
 
“An investigation by the House Homeland Security Committee found that cranes made by China and installed at U.S. ports included communications equipment put in place without explanation.
 
“The investigation, which was also conducted by the House Select Committee on China, focused on 200 Chinese-made cranes at U.S. ports and facilities that included undocumented cellular modems that can be used for remote communication.
 
“‘Our Committees’ investigation found vulnerabilities in cranes at U.S. ports that could allow the [Chinese Communist Party] to not only undercut trade competitors through espionage, but disrupt supply chains and the movement of cargo, devastating our nation’s economy,’ House Homeland Security Committee Chairman Mark Green (R-TN) said in a statement to CNN. ‘Without a swift sea-change, we will continue to gift the CCP with an easy means of infiltrating our critical infrastructure on their quest for global dominance.’”

Image

Business Insider via Mikhaila Friel:

“Chinese cranes used at US ports were installed with communication equipment that could be used for espionage, according to a congressional investigation reported by The Wall Street Journal.

“More than 12 cellular modems that could be used remotely were found in Chinese-made cranes, unnamed aides told The Journal

“Some of the cranes were built by Shanghai Zhenhua Heavy Industries (ZPMC), a state-owned Chinese manufacturer, which has been widely viewed in the US as posing a security risk.

“Several of the modems were used for operational functions for the cranes, such as the ability to monitor and track maintenance remotely, the Journal reported.

“Tennessee politician Mark Green told the Journal that he believes China to be a major threat to US security.

“Green, chairman of the House Homeland Security Committee, which has been investigating Chinese maritime security threats, said China ‘is looking for every opportunity to collect valuable intelligence and position themselves to exploit vulnerabilities by systematically burrowing into America’s critical infrastructure, including in the maritime sector.’”

Image

The Daily CallerviaJake Smith:

“Rather than building them domestically at potentially higher costs, the U.S. relies heavily on Chinese-built cargo cranes that are relatively cheap to produce and equip at seaports across the country. The congressional probe discovered that several of these cranes, built by Chinese mega-manufacturer ZMPC, contain communications devices that were not requested or don’t appear to support standard operations, heightening existing espionage concerns, according to the WSJ.

“Some of the devices discovered through the probe included over a dozen cellular modems on crane components at one U.S. port and a modem at a server room at another port, according to the WSJ. It isn’t unusual that such equipment would be found in these ports, as it’s often used to monitor and track operations remotely, but several ports with ZMPC cranes didn’t even ask for that capability.

“One port told Congress in December they were aware such modems were installed on cranes but did not know why they were there, according to the WSJ.

“‘We are unsure who installed the modems, as they were on the cranes when we first saw them in China,’ the port told the House Homeland Security Committee in a December letter. The port explained in the letter that the modems were believed to be installed in 2017, around the time the cranes were being built in China before delivery to the U.S.; the modems were removed in October 2023.”

Image

The Daily Mail via Keith Griffith:

“Cranes made by Shanghai Zhenhua Heavy Industries (ZPMC), a state-owned Chinese company, in some cases carry cellular modems, according to a congressional investigation reported by the Wall Street Journal on Thursday.

“The modems offer a potential backdoor for remote access, and do not appear to support the normal operations of the equipment, the investigation found.

“The discovery of the modems, which had not been previously disclosed, supports growing fears in US intelligence circles that Chinese cranes could be used to covertly monitor US ports, or even sabotage their operations.

“House Homeland Security Committee Chair Mark Green, a Tennessee Republican, told the Journal that the Chinese government ‘is looking for every opportunity to collect valuable intelligence and position themselves to exploit vulnerabilities by systematically burrowing into America’s critical infrastructure.”

Image

The Blaze Media via Candace Hathaway:

“In December, one port told the House Homeland Security Committee, ‘We are unsure who installed the modems, as they were on the cranes when we first saw them in China.’ The port speculated that the modems were installed in 2017 when the cranes were built in China. The devices were removed in 2023.

“Republican Rep. Mark Green (Tenn.) told the WSJ that China ‘is looking for every opportunity to collect valuable intelligence and position themselves to exploit vulnerabilities by systematically burrowing into America’s critical infrastructure — including in the maritime sector.’”

“‘The United States has clearly overlooked this threat for far too long,’ Green noted.

“Last week, the Homeland Security Committee told ZMPC that the communication devices do not ‘contribute to the operation of the (ship-to-shore) cranes or maritime infrastructure and is not part of any existing contract between ZPMC and the receiving U.S. maritime port,’ WSJ reported.”

Image

“The committee’s inquiry into Chinese threats to American maritime security has uncovered dozens of cranes with previously-unidentified cellular modems attached to their electronic systems, reports the Wall Street Journal. 

“While there are legitimate reasons for industrial systems like cranes to be fitted with their own telecom access points – for example, remote diagnostics data for aftersales support – the purpose of these particular devices is unknown, and they were not documented in any sales contract. The modems appear to have been installed in China, before the cranes’ delivery. One port’s staff told the Journal that they were not sure what the modems were for; in some cases, these devices connected to the cranes’ operating control systems. 

“The suspicious hardware is another example of Chinese government efforts to ‘systematically burrow into America’s critical infrastructure,’ committee chairman Rep. Mark Green (R-TN) told the WSJ. Green is concerned that this effort is not just intended for spying, but for creating the capability to disrupt American commerce at will.”

Image

Fox Business via Eric Revell:

“Lawmakers wrote to the company at the end of February and informed the company that they identified ‘serious concerns’ about ZPMC’s relationship with the CCP. They noted that some cellular modem components found installed on cranes that ‘do not appear in any way to contribute to the operation of the STS cranes or onshore infrastructure, raising significant questions as to their intended applications.’

“The congressional letter to ZPMC noted that, ‘In 2021, the Federal Bureau of Investigation (FBI) discovered intelligence gathering equipment on board a vessel delivering ZPMC cranes to the Port of Baltimore.’

“The letter added that ZPMC ‘accounts for nearly 80 percent of the ship-to-shore (STS) cranes in use at U.S. maritime ports’ and that many of those cranes were built in an area adjacent to a shipyard ‘where the [People’s Liberation Army Navy’s] most advanced warships are built, including the PRC’s third aircraft carrier and its fleet of Type 055 and Type 052 destroyers.’

“‘The Committees have serious concerns that this proximity to the PLAN’s main shipyard provides malicious CCP entities, including its intelligence agencies and security services, with ample opportunity to modify U.S.-bound maritime equipment, exploit it to malfunction, or otherwise facilitate cyber espionage thereby compromising U.S. maritime critical infrastructure,’ the letter continued.”

NewsNationCommunication devices found on Chinese-made cranes in US ports

Image

KTVU FOX 2 San Francisco: Cybersecurity concerns over Chinese cranes at Port of Oakland

Image

Straight Arrow News:Spying probe finds comms equipment on Chinese cranes at US ports

Image