US To Invest Billions In Replacing China-Made Cranes At Ports Amid National Security Concerns

President Joe Biden‘s administration is set to invest billions of dollars in the domestic production of cargo cranes to replace those made in China, citing potential national security risks.

What Happened: The Biden administration is concerned that the widespread use of Chinese-made cranes with advanced software at U.S. ports could pose a national security threat, reported The Wall Street Journal on Wednesday.

The administration is planning to invest over $20 billion in port security, including the domestic production of cargo cranes, over the next five years. This investment will be drawn from the bipartisan infrastructure bill passed in 2021.

"By design these cranes may be controlled, serviced and programmed from remote locations," said Rear Adm. John Vann, who leads the Coast Guard cyber command. "These features potentially leave PRC (People's Republic of China) manufactured cranes vulnerable to exploitation.”

The U.S. subsidiary of Mitsui, a Japanese company, will receive the funding to produce the cranes. This will mark the first time in 30 years that these cranes will be built domestically.

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Officials are concerned that the use of sensors on these cranes could allow China to access information about U.S. shipments. The administration’s actions follow a Wall Street Journal investigation that revealed U.S. fears about the potential espionage and disruption risks posed by the giant cranes made by a Chinese state-owned company.

"Communist China is no friend to the United States and consistently works to undermine American interests and our security. Our ports are critical hubs of economic activity, a cyberattack by Communist China could cause a cascading impact to domestic and global supply chains," said Rep. Carlos Giménez (R- Fla.), who represents Miami and has introduced legislation intended to address the security risks posed by the cranes.

Why It Matters: The concerns over the Chinese-made cranes are not new. In March, the U.S. national security and Defense Department officials expressed concerns that the cranes, manufactured by Zhenhua Heavy Industries Company, could be used as a spying tool. The cranes contain sophisticated sensors that can register and track the origin and destination of containers.

These security concerns are part of a broader issue of tech tensions between the U.S. and China. In January, the U.S. government called on cloud service providers to disclose the foreign clients using their platforms for artificial intelligence development, heightening tech tensions between the two countries.

These tensions are further exacerbated by China’s escalating military pressure on Taiwan, which could potentially disrupt efforts to stabilize U.S.-China relations. The FBI has also warned of China’s cyber threat, labeling the current situation as “the tip of the iceberg” and a national security threat.

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