U.S. DoD Blacklists Cosco as Chinese Military Company
The U.S. Department of Defense (DoD) updated its list of “Chinese military companies” for 2025 and added China Cosco Shipping Corporation Limited, which we usually just refer to as Cosco or COSCO (but I don’t want you to feel like I’m yelling it at you). Cosco is the world’s 4th largest ocean freight carrier by capacity. Oh, and by the way, Cosco is a state-owned company by the People’s Republic of China.
The list actually includes Cosco and a couple of its subsidiaries:
China COSCO SHIPPING Corporation Limited (COSCO SHIPPING)
COSCO SHIPPING (North America) Inc.
COSCO SHIPPING Finance Co., Ltd.
Here’s how the DoD describes the list and the importance of updating it:
Updating the Section 1260H list of “Chinese military companies” is an important continuing effort in highlighting and countering the People’s Republic of China’s (PRC) Military-Civil Fusion strategy. The PRC’s Military-Civil Fusion strategy supports the modernization goals of the People’s Liberation Army (PLA) by ensuring it can acquire advanced technologies and expertise developed by PRC companies, universities, and research programs that appear to be civilian entities. Section 1260H directs the Department to begin identifying, among other things, Military-Civil Fusion contributors operating directly or indirectly in the United States.
The Department will update the list with additional entities as appropriate. The United States Government reserves the right to take additional actions on these entities under authorities other than Section 1260H.
People often categorize the Chinese military companies list as a “name and shame” list. However, the list does increase the likelihood of reduced business with the U.S. government and U.S. businesses for named companies and more government action against the company, including the possibility of some sort of sanctions or restrictions. Ultimately, this is a “blacklist” to help the U.S. government out militant behavior from the Chinese government and flagging companies that could pose threats to national security.
Other International Shipping Industry Companies on the List
There are other international-shipping-related companies on the list.
On the air freight side is China Cargo Airlines Co., Ltd. (CCA).
Also added to the list are shipbuilding and leasing companies:
China Shipbuilding Trading Co., Ltd. (CSTC)
China State Shipbuilding Corporation Limited (CSSC)
CSSC Offshore & Marine Engineering (Group) Company Limited (COMEC)
Guangzhou Wenchong Shipyard Co., Ltd.
Huacheng (Tianjin) Ship Leasing Co., Ltd.
Restrictions Already Happening
Cosco and CCA’s blacklistings have already caused restrictions to hit them. Alexander Whiteman reported in the Loadstar about the shipping companies getting barred from Pentagon contracts:
Pentagon officials have confirmed to The Loadstar that China Cargo Airlines and Cosco face being blacklisted from US government-related contracts.
The threat follows the firms being added to a list of Chinese commercial interests considered “military assets”…
A US defence official told The Loadstar the 2024 National Defense Authorization Act (NDAA) prohibited the Pentagon from entering, renewing or extending contracts for goods, services or technologies with companies, or entities subject to the control of companies, listed.
…
The official added that the NDAA also prohibited the renewal and extension of contracts where supply chains include goods or services provided by companies listed, which would become effective in 2027.
COSCO Responds
In a statement, Cosco Shipping gave this response to being blacklisted:
COSCO SHIPPING and its subsidiaries have consistently adhered to local laws and regulations, maintaining strict compliance in all international operations. We remain committed to facilitating global trade and providing high-quality commercial shipping and logistics services to clients worldwide, including agricultural producers, manufacturers, energy firms, retailers, and exporters in the United States.
We emphasize that none of the aforementioned companies are “Chinese military companies.” We will engage with U.S. authorities to clarify this matter. This designation does not impose sanctions or export controls, and our global operations will continue uninterrupted.
