US regulators have today seemingly branded Cosco a “military” asset, including the Chinese container line on a list of designated entities operating in the US.
The carrier has been included among 133 Chinese entities on the list, which also includes China Cargo Airlines, in an annual update, after reports noting the use of Cosco vessels in practice runs for the Chinese military’s invasion of Taiwan.
A DOD memo noted: “The deputy secretary of defense has determined the entities listed qualify as ‘Chinese military companies’ in accordance with the National Defense Authorization Act.”
Publication of the list this morning precipitated a fall in Cosco’s share price, Reuters noting a 4% drop, despite the designation including no sanction, but rather government discouragement over US companies conducting business with the carrier.
Reports elsewhere have claimed that, from 2026, legal changes in the US will prohibit the Pentagon from contracting with companies on the list. And, as of 2027, the defence department would also be blocked from procuring “goods or services that include the listed companies in their supply chains”, although at the time of going to press, The Loadstar was unable to verify this change.
The news may present issues for Cosco’s Ocean Alliance partner, CMA CGM, which operates a number of ships under the US flag as part of its work for the Department of Defense.
Despite being Cosco’s first time on the list, the carrier was sanctioned by the Trump administration in 2019, after its tankers had been caught carrying Iranian crude oil, the sanction lifted a year later.
Alongside Cosco, China State Shipbuilding and China Shipbuilding Trading were also added to the list today, indicating increased US government scrutiny of the maritime sector.
Source: https://theloadstar.com/cosco-share-price-falls-after-us-lists-carrier-as-a-chinese-military-asset/
