China-made Cranes in US Ports: Concerns and Cybersecurity Risks

China’s significant presence in critical U.S. port operations has raised concerns within the Biden administration. A recent House hearing focused on the use of Chinese-manufactured cranes in U.S. ports, with 80% of these cranes coming from China. Representatives questioned officials from the Department of Homeland Security and Coast Guard about the potential risks of relying on China and the impact on port resiliency.

The reliance on China-made cranes is seen as an overreliance by the Biden administration. Christa Brzozowski, acting assistant secretary for trade and economic security at the Department of Homeland Security, emphasized this concern during the House Subcommittee on Transportation and Maritime Security hearing.

The seaports in the United States handle over 99% of the country’s cargo from overseas, supporting 31 million jobs and contributing $5.4 trillion to the economy. These numbers underscore the importance of ensuring the security and resilience of U.S. ports.

In early 2023, concerns were raised about the possibility of Chinese ship-to-shore crane manufacturer Shanghai Zhenhua Heavy Industries Co. (ZPMC) being exploited as a spying tool by Beijing. These concerns have intensified pressure on the Biden administration from Capitol Hill. However, ZPMC has not responded to CNBC’s requests for comment. The American Association of Port Authorities (AAPA), which represents major container ports, has stated that there is no evidence to support claims of cyber vulnerabilities in Chinese-manufactured cranes.

The executive director of the Port of Los Angeles, Gene Seroka, highlighted the importance of cybersecurity in the port and supply chain industry. He explained that high-tech cranes can collect data, making the executive order on port cybersecurity issued by President Biden crucial. The Port of Los Angeles has been at the forefront of cybersecurity efforts, successfully preventing millions of intrusion attempts.

Brzozowski noted that reliance on China for shipping cranes is not an isolated issue. She emphasized that China aims to be the leading manufacturer of maritime equipment. While no verified threats have been found in the current cranes in use, the potential risks and China’s known exploitation of critical infrastructure sectors raise concerns.

Coast Guard testimony revealed that nearly half of the PRC-manufactured cranes have been assessed. The House hearing coincided with the Biden administration’s warning about security risks posed by Chinese electric vehicles. Subcommittee Chairman Carlos Gimenez (R-FL) questioned whether China’s rapid development of airports and ports, fueled by the Belt and Road initiative, could put the U.S. at a disadvantage.

The Biden administration has taken a whole government approach to secure the nation’s ports. A new Supply Chain Resilience Center, established at the White House, is collaborating with the Departments of Commerce, Transportation, and Defense to protect critical port infrastructure. The executive order empowers port captains to secure cranes or terminals in the event of a cyber intrusion.

The House hearing also addressed the potential risks and benefits of port automation. While automation offers efficiencies, increased cyber vulnerabilities must be addressed to ensure the security of the system. Rear Admiral Wayne R. Arguin Jr., assistant commandant for prevention policy for the U.S. Coast Guard, assured representatives that the Coast Guard maintains a constant presence in all ports and is committed to minimizing disruptions caused by cyber threats or other challenges.

The concerns surrounding China-made cranes in U.S. ports highlight the importance of cybersecurity and the need to secure critical infrastructure. As China continues its global infrastructure development, it is crucial for the U.S. to remain vigilant and protect its interests.

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