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Chinese cranes, which control 80% of US ports, are concerned about ‘Trojan Horse’ paralyzing US logistics

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Chinese ZPMC products installed in military bases
Logistics information collection with sensors – possibility of disturbance
Regulations such as Huawei and TikTok continue, but
Show that it is difficult to get rid of Chinese products

Chinese ZPMC cranes account for 70% of the global market China’s Shanghai Zhenhua Heavy Industries (ZPMC) cranes account for 70% of the global shipping crane market. The U.S. security authorities recently raised suspicions that China was stealing information on goods for U.S. military operations through ZPMC cranes installed in U.S. ports. ZPMC USA site capture

Concerns have arisen that Chinese container cranes, which dominate US ports, could become a “Trojan Horse” that paralyzes US logistics. It is said that information collection devices such as sensors mounted on Chinese-made cranes can not only send information on the transportation of US military supplies to China, but also harm the US by disrupting the logistics network in the event of a US-China conflict.

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The possibility of wiretapping the transmission tower of Huawei, China’s largest telecommunications equipment company, has been raised, and China’s video-sharing platform ‘TikTok’ is being kicked out of government agencies and universities for threatening American security. The voice of ‘decoupling (decoupling)’ with China is getting louder in the US Congress. However, some analyze that the high dependence on China has been revealed in various parts of the US industry, showing the reality that it is not easy to get rid of Chinese products.

● Chinese-made cranes control 80% of US ports

The Wall Street Journal (WSJ) reported on the 5th (local time) that U.S. national security officials are preparing countermeasures after pointing out that Chinese-made cranes installed in ports can collect and transmit information on the transportation of U.S. military supplies. Cranes that load and unload containers from large ships to ports are equipped with sensors that can track the source and destination of cargo, and this information is being transmitted to the Chinese headquarters. In fact, as a result of a confidentiality assessment in 2021, the US Defense Intelligence Agency confirmed that the Chinese government could collect information about US military equipment transported through ports through the medium of cranes, the WSJ reported.

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It is known that 80% of cranes currently installed in US ports are manufactured by China’s Shanghai Telephone Heavy Industries (ZPMC). ZPMC is a subsidiary of China Transportation Construction (CCCC), a state-owned enterprise that plays a key role in the ‘One Belt, One Road’ project, which is the main focus of Chinese President Xi Jinping.

In particular, the WSJ reported that ZPMC products were installed in ports in Virginia, South Carolina, and Maryland, where US military bases are located. Bill Evanina, former director of the National Counterintelligence and Security Center (NCSC), told the WSJ, “Cranes could be the new Huawei. In addition to collecting confidential information, remote access can disrupt cargo shipments.”

The National Defense Authorization Act (NDAA), which was passed last December, requires the U.S. Department of Transportation to submit reports on cyber security and national security threats of foreign cranes by the end of this year. In addition, Congressman Carlos Jimenez, a Republican, introduced a bill last year to ban the purchase of Chinese cranes.

● ‘Decoupling paradox’ in successive regulations on ‘dual-use’ items in China

Concerns about Chinese-made cranes have been raised as the United States has been trying to find Chinese products used in national security-related facilities to block Chinese espionage. However, as the US responds to China’s threat through various export restrictions and executive orders, it is pointed out that the US-China ‘decoupling dilemma’ is being revealed.

As the United States introduces regulations on core technologies such as advanced semiconductors and quantum computers, the risk of China’s ‘dual-use’ products that have penetrated deeply into the US industry with low prices as a weapon is raised, and the decoupling front with China is getting wider. Dual-use items are products that can be used for both commercial and military purposes, and extending the blockade to these items could increase the burden on U.S. businesses and industries.

The U.S. Commerce Department has been criticized by Congress for approving exports of 23 billion dollars (about 30.5 trillion won) in the first quarter of last year to sanctioned companies such as Huawei. Reuters reported on the 4th that the Joe Biden administration analyzed that US companies such as Nvidia would be unavoidable when sanctions on Huawei were expanded.

Forbes magazine pointed out that “US-China trade and investment have been on the rise for the second year in a row despite geopolitical competition and technology transfer blockages,” pointing out that “it shows a huge paradox that China can be America’s greatest enemy and still be an essential supply chain partner.”

Washington =

Source: Donga

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