China’s Shanghai Zhenhua denies cybersecurity risk to U.S. ports

Shanghai Zhenhua Heavy Industries (ZPMC) said on Sunday its cranes did not pose a cybersecurity threat after a U.S. congressional committee questioned the Chinese state-owned company’s work on cranes shipped to the United States.

A House safety panel examining ZPMC’s installation of equipment from Swiss engineering group ABB onto ship-to-shore cranes destined for the United States invited ABB executives to a public hearing in January to clarify its relationship with ZPMC, which they said caused “Major concerns”.

“ZPMC takes the United States’ concerns seriously and believes these reports could easily mislead the public without adequate factual review,” ZPMC said in a filing, referring to the Committee on Homeland Security and Strategic Competition investigation.

“The cranes provided by ZPMC do not pose a cybersecurity risk to any port,” it said.

ABB said it sells its control and electrification equipment to a number of crane manufacturers, including Chinese companies, which in turn sell the cranes directly to U.S. ports.

The United States and China, the world’s largest economies, often accuse each other of cyberattacks and industrial espionage. Washington said this year it had thwarted Chinese cyber espionage targeting U.S. infrastructure and was investigating whether imported Chinese cars pose national security risks. It has previously banned Chinese telecom companies.

ZPMC said the cranes it supplies are used in ports around the world, including the United States, and comply with international standards and applicable laws and regulations.

ZPMC, which is listed on the Shanghai Stock Exchange, is one of the world’s largest port machinery manufacturers with a fleet of more than 20 transport vessels, according to its website.

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16% of ABB’s sales come from China, second only to the 24% of the US market.

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