In a world where technology advances at a rapid pace, concerns over cybersecurity are growing in tandem, especially in the realm of international trade. The latest worry to hit the U.S. centers around Chinese shipping cranes—an unlikely item that has found itself in the crosshairs of Washington and Beijing’s strained relations.
Chinese firm Shanghai Zhenhua Heavy Industries, also known as ZPMC, dominates the global market, accounting for over 70% of the world’s shipping cranes. In the U.S alone, over 200 Chinese-made cranes are in operation, making up nearly 80% of the total, according to the U.S. Coast Guard. These cranes play a crucial role in moving goods through maritime ports, with many being remotely controlled.
Why are Chinese Cranes a Concern?
The U.S. officials have been sounding the alarm, citing the potential security threats these cranes could pose. The fear is that hackers could exploit the remote control feature of these cranes, causing significant disruptions to the economy. A recent congressional probe claimed to have found over a dozen cellular modems on cranes that could be accessed remotely, as reported by the Wall Street Journal.
ZPMC, however, has categorically denied these allegations. In a statement released last Sunday, the company asserted that it strictly adheres to laws and regulations of relevant countries and regions. ZPMC further argued that the recent reports “can easily mislead the public without sufficient factual review.”
How is the U.S. Responding?
In the wake of these concerns, the Biden administration has taken proactive steps. In late February, an executive order was enacted to give officials more authority to bolster cybersecurity at U.S. ports. A whopping $20 billion, drawn from funds under the bipartisan infrastructure law and Inflation Reduction Act, have been allocated to improve port infrastructure.
These funds will also promote the domestic production of cranes, specifically from the U.S. subsidiary of Japanese firm Mitsui.
What’s the Verdict?
The American Association of Port Authorities (AAPA) recently weighed in on the matter. Despite the growing alarm, the AAPA stated that there have been no known security breaches from Chinese-made cranes at U.S. ports. They added that cranes “can’t track the origin, destination, or nature” of cargo shipped in U.S. ports.
However, the AAPA does support the call for local manufacturing of shipping cranes to counterbalance Chinese subsidies, which can make Chinese-made cranes 50% cheaper than their competition.
In the words of Cary Davis, AAPA’s general counsel, “I like a good spy movie, but you need a smoking gun to make it a blockbuster, and there’s no smoke in this story.” As the debate continues, it’s clear that the intersection of technology, security, and international trade is a complex web that will continue to evolve.
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