Chinese Shipping Company, Shipbuilders Designated "Military Companies" by U.S.
As geopolitical tensions rise globally, and President Trump prepares to reenter the White House later this month, focus turns to the maritime sector and China's growing dominance. So when the U.S. Department of Defense released on the Federal Register on January 7, 2025 a "Notice of Chinese military companies operating in the United States," a trio of prominent maritime companies Cosco Shipping Holdings Co.; China State Shipbuilding Corp. and China Shipbuilding Trading Co. made the list, as "the Deputy Secretary of Defense has determined that the entities listed ... qualify as “Chinese military companies” in accordance with the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021."
While inclusion on the list does not come with any specific penalties, per se, inclusion dissuades U.S. companies from doing business with the named entities. Each organization is entitled to "request reconsideration" by presenting evidence that current circumstances no longer warrant their inclusion.