WASHINGTON, D.C. — Today, Select Committee on the Chinese Communist Party Chairman John Moolenaar (R-MI), House Committee on Homeland Security Chairman Mark E. Green, MD (R-TN), and Subcommittee on Transportation and Maritime Security Chairman Carlos Gimenez (R-FL) unveiled a joint investigative report exposing a rising threat to U.S. economic and national security posed by the Chinese Communist Party (CCP).
The report reveals how Shanghai Zhenhua Heavy Industries (ZPMC)—a company owned and operated in the People’s Republic of China (PRC)—dominates the global market share of ship-to-shore (STS) port cranes, creating significant cybersecurity and national security vulnerabilities for both the United States and its allies. ZPMC currently accounts for nearly 80 percent of the STS cranes in operation at U.S. ports. The report also outlines strategies for how the United States can address these risks and promote a more secure global maritime infrastructure.
“The evidence gathered during our joint investigation indicates that ZPMC could, if desired, serve as a Trojan horse capable of helping the CCP and the PRC military exploit and manipulate U.S. maritime equipment and technology at their request," stated the lawmakers. "This vulnerability in our critical infrastructure has the potential to affect Americans from coast to coast."
They added, “By potentially sacrificing long-term economic security for short-term financial gain, we have given the CCP the ability to track goods through our ports or even halt port activity at any moment.”
During their investigation, Committees requested that ABB, a Swedish-Swiss company, take steps to remedy significant vulnerabilities in its China-based supply chains involving US-bound cranes. ABB refused this request.
“While the Biden administration’s executive orders on maritime security are an important step forward, our investigation proves immense damage may have already been done,” they noted.
The report highlights several key findings:
**Beijing wields unprecedented power in the maritime sector:** Two PRC state-owned enterprises control portions of five U.S. ports and funnel tens of billions of dollars in PRC overseas seaport investments using equipment originating from PRC.
**ZPMC benefits the CCP & America’s adversaries:** ZPMC is a wholly owned subsidiary of China Communications Construction Group (CCCG), which has significant involvement in militarizing the South China Sea.
**ZPMC is a cybersecurity risk:** ZPMC installed cellular modems onto STS cranes operational at certain U.S. ports without contractual scope; FBI discovered intelligence gathering equipment near or on ZPMC STS cranes at Port of Baltimore.
**Alternatives also contain vulnerabilities caused by CCP’s influence:** Most global crane manufacturing companies maintain ties to PRC, making them vulnerable to supply-chain disruptions or susceptible to PRC pressure.
**The Indo-Pacific could be at risk:** The PRC's geopolitical ambitions raise concerns about U.S. maritime supply chain security.
For more than a year, Committees conducted oversight with stakeholders including DHS, FBI, NSA, 10 strategic seaports, three international port equipment manufacturers among others.
In 2023 outlets such as Wall Street Journal reported national security risks from Chinese state-owned cranes after FBI discovered intelligence collection devices on ZPMC cranes at Port of Baltimore.
Following these reports then-Chairman Mike Gallagher (R-WI) visited U.S. Port Miami in March 2023 regarding critical infrastructure threats from PRC-linked technology.
In April 2023 Chairmen sent letter demanding answers on threats from China due to ZPMC cranes; June 2023 staff visited Port Newark-Elizabeth Marine Terminal regarding cybersecurity risks; July 2023 letter to ABB regarding relationship with ZPMC led ABB refusing cooperation with Committees' requests; February 2024 Chairmen issued statement concerning Biden administration’s new investments in domestic manufacturing of port cranes; March 2024 hearing examined vulnerabilities amid increased cybersecurity threats from China.
