COSCO & Other Chinese Firms Added to US Pentagon Blacklist

COSCO, the largest shipping company in the world, has been included in a list of companies the US Department of Defense identifies as having ties to China’s People’s Liberation Army (PLA). While being on the Pentagon’s blacklist does not impose direct penalties, it serves as a warning to US firms to avoid engaging with these entities, which Washington views as military-linked.

Other Chinese shipping and maritime-related companies added to the list include China State Shipbuilding Corporation (CSSC), the country’s leading shipbuilder, and China National Offshore Oil Corporation (CNOOC), the top offshore oil explorer.

The blacklist also features China International Marine Containers (CIMC), the largest container manufacturer globally, China Communications Construction Group, a major global port developer, and Sinotrans & CSC Holdings, a prominent Chinese shipping firm.

This is not the first time COSCO has faced action from the US. In 2019, its tankers were temporarily sanctioned for transporting Iranian oil, causing very large crude carrier (VLCC) rates to surge to $200,000 per day.

Meanwhile, reports suggest that the outgoing Joe Biden administration is preparing one of its largest sanctions packages to target Russia’s "dark fleet" of tankers in a related move.