World News
US Labels COSCO and Other Prominent Chinese Firms as 'Military in Nature'
The US Department of Defense (DoD) released an updated list of 'Chinese military companies' operating directly or indirectly in the US.
Container line COSCO has been added to the list, alongside Chinese shipyard China State Shipbuilding Corporation (CSSC) and offshore firm China National Offshore Oil Corporation (CNOOC), according to the list released by DoD on Tuesday.
Other maritime firms on the list include China International Marine Containers (CIMC), a major container manufacturer.
Although being placed on the Pentagon's blacklist does not entail direct penalties or sanctions, it acts as a deterrent for US companies, discouraging them from engaging with these firms that Washington links to military interests.
"This is not in itself going to create any major disruption, as there is no 'penalty' associated with this apart from the US military not being able to ship cargo with COSCO," Lars Jensen, CEO of container consultancy Vespucci Maritime wrote in his LinkedIn post.
"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 DoD mentioned on its website.
China is a major global shipbuilder, and placing prominent shipyards on the blacklist may discourage companies from forming commercial relationships or placing orders with these firms.
This comes at a time when China has been actively seeking more orders for alternative-fuelled ships as part of its strategy to advance towards greener technologies.
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