China Persists in Stealing Sensitive Data in U.S. Ports-With a Digital Trojan Horse

The House Committee on Homeland Security has raised concerns about cellular modems found on Chinese-built cargo cranes installed at U.S. ports. The committee fears China might use these devices for espionage

A subsequent Congressional report demonstrated that Chinese crane manufacturer ZPMC had designed remote access to its cranes via these modems. While some ports have refused to give in to ZPMC’s unreasonable demands, citing legitimate concerns of security, others have already caved, especially those on the West Coast.¹

While the requests for remote access are supposedly for diagnostics and maintenance purposes, observers point out that these embedded modems can also create unethical access by the Chinese Communist Party (CCP). The report cited examples of port authorities unaware of these modems because they exist outside the contractual agreements, underscoring the deceitful intent to install and use them.

These modems allow the CCP to collect sensitive and confidential information, bypass security and disrupt port loading and unloading. The investigating committees added that while the installation of modems to collect data is often expected, bypassing firewalls and security is not. Furthermore, the current geopolitical tensions with China heighten the risks for the U.S., especially in light of pending conflicts over Taiwan, the Philippines and the South China Sea.

“The evidence gathered during our joint investigation indicates that ZPMC could, if desired, serve as a Trojan horse capable of helping the CCP and the People’s Republic of China (PRC) military exploit and manipulate U.S. maritime equipment and technology at their request. This vulnerability in our critical infrastructure has the potential to affect Americans from coast to coast.”²

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The House Committee on Homeland Security has called for an urgent review of national security protocols to shore up potential vulnerabilities linked to communist-manufactured equipment in critical infrastructure. Guidelines need to be issued that address existing equipment and how to eliminate risks in future purchases. Federal agencies are being called to work with local port authorities to ensure cybersecurity measures are diligently implemented and followed.

Meanwhile, port operators are encouraged to scrutinize their technology and look for alternative sources other than China to minimize the threat of espionage and disruption. Strengthening U.S. manufacturing capabilities is another strategy that has been suggested to reduce dependency on communist suppliers for critical infrastructure.

In a letter to the investigating committee, ZPMC denied any responsibility for installing the cellular modems on its cranes. This statement is difficult to accept at face value, given that ZPMC knows the capacity of the components in its cranes. Allowing the CCP access to American crane data would be devastating. The CCP would undercut America’s ability to trade internationally and even disrupt U.S. infrastructure by shutting down maritime activities.

ZPMC is a subsidiary of China Communications Construction, one of the leading players in Xi Jinping’s project to flood global markets with cheap Chinese products. One primary focus of concern is ZPMC’s cranes at the Port of Long Beach in California.

ZPMC officials were silent when asked for comments about this egregious matter. At earlier hearings, officials had begun to cooperate. However, the company later said it would not answer Congress inquiries since it needed permission from the CCP. Regarding the cellular modems, ZPMC officials continue to blame the installers.

As usual, the CCP has dismissed U.S. concerns as paranoia, saying protectionist motives are behind the inquiry.

American officials say the nation’s reliance on Chinese-made transportation and communication equipment is risky. They stress that developing domestic alternatives would reduce America’s vulnerability and enhance economic independence. There is an urgent need to consult with industry leaders so that a move away from Chinese products can be made quickly and permanently.

The Biden administration announced a plan to invest more than $20 billion to replace foreign-built cranes with U.S.-built cranes.

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The congressional investigation also uncovered weaknesses in the supply line for assembling cranes. Chinese Cranes with software from companies like the Swiss ABB Group Ltd. did not conform to current security protocols.

Supply companies often permit essential components to be shipped to China, where ZPMC assembles them without security provisions.

The House Committee on Homeland Security investigation also discovered that the contracting practices between CCP state-owned enterprises (SOE) like ZPMC and U.S. ports lacked sufficient security measures. The review of multiple contracts revealed the absence of provisions restricting unauthorized modifications or access to equipment and technology destined for U.S. ports.

This loophole could allow entities like ZPMC and other communist SOEs to install Trojan horses to steal sensitive information, tamper with U.S. technology, and even paralyze U.S. maritime activities. This access would be devastating during a time of conflict.

Throughout history, dealing with communist despots has shown that appeasing enemies has never prevented wars; it triggers them. Shutting down the cranes would be a good step toward ensuring security for America and its allies.

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