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Shanghai Zhenhua Denies Allegations Of Posing Cybersecurity Threat To US Ports

Tensions between the U.S. and China, the world’s two largest economies, often involve accusations of cyberattacks and industrial espionage

Shanghai Zhenhua Heavy Industries (ZPMC) has responded to concerns raised by U.S. congressional committees regarding the cybersecurity of its cranes, asserting that they do not pose any threat. The Chinese state-owned company’s statement follows inquiries from the House of Representatives security panels, who had questioned ZPMC’s collaboration with Swiss engineering group ABB on ship-to-shore cranes destined for the United States.

In January, the House committees invited ABB executives to public hearings to clarify their relationship with ZPMC, expressing “significant concerns” about the matter.

ZPMC addressed these concerns seriously, emphasising the importance of conducting a thorough factual review before drawing conclusions that could mislead the public. The company stated unequivocally that the cranes it provides do not present any cybersecurity risk to ports.

ABB, in response, explained that it sells its control and electrification equipment to various crane manufacturers globally, including Chinese companies like ZPMC, who then sell the cranes directly to U.S. ports.

Tensions between the U.S. and China, the world’s two largest economies, often involve accusations of cyberattacks and industrial espionage. Washington recently disclosed its disruption of a Chinese cyber-spying operation targeting U.S. infrastructure and announced investigations into potential national security risks associated with Chinese vehicle imports. The U.S. has also previously imposed restrictions on Chinese telecom companies.

ZPMC emphasised that its cranes are used in ports worldwide, including the United States, and adhere to international standards and applicable laws and regulations.

Listed on the Shanghai stock exchange, ZPMC is recognized as one of the largest port machinery manufacturers globally, with a fleet of more than 20 transportation vessels, according to its website.

ABB derives 16 per cent of its sales from China, making it the company’s second-largest market after the U.S. market, which accounts for 24 per cent of its total sales.

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