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China’s Shanghai Zhenhua Denies Posing Cybersecurity Risk to US Ports


FILE - The Zhen Hua 31 heavy-lift ship carries four super-post Panamax container cranes into Commencement Bay, in Tacoma, Washington, March 5, 2019. The cranes were purchased by from Shanghai Zhenhua Heavy Industries Co. Ltd. in China.
FILE - The Zhen Hua 31 heavy-lift ship carries four super-post Panamax container cranes into Commencement Bay, in Tacoma, Washington, March 5, 2019. The cranes were purchased by from Shanghai Zhenhua Heavy Industries Co. Ltd. in China.

Shanghai Zhenhua Heavy Industries, or ZPMC, said on Sunday its cranes do not pose a cybersecurity threat, after U.S. congressional committees questioned the Chinese state-owned company's work on cranes bound for the United States.

The House of Representatives’ security panels, scrutinizing ZPMC's installation of Swiss engineering group ABB's equipment onto U.S.-bound ship-to-shore cranes, in January invited ABB executives to public hearings to clarify its relationship with ZPMC, which they said raised "significant concerns."

"ZPMC takes the U.S. concerns seriously and believes that these reports can easily mislead the public without sufficient factual review," it said in a filing, referring to the probe by the Homeland Security and Strategic Competition committees.

"The cranes provided by ZPMC do not pose a cybersecurity risk to any ports," it said.

ABB has said it sold its control and electrification equipment to many crane manufacturers, including Chinese companies, which in turn sold cranes directly to U.S. ports.

The U.S. and China, the world's biggest economies, frequently accuse each other of cyberattacks and industrial espionage. Washington this year said it had disrupted a Chinese cyber-spying operation targeting U.S. infrastructure and was investigating Chinese vehicle imports for national security risks. It previously barred 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.

Listed on the Shanghai stock exchange, ZPMC is one of the largest port machinery manufacturers in the world, owning a fleet of more than 20 transportation vessels, according to its website.

ABB generates 16% of its sales from China, second only to the U.S. market at 24%.

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    Reuters

    Reuters is a news agency founded in 1851 and owned by the Thomson Reuters Corporation based in Toronto, Canada. One of the world's largest wire services, it provides financial news as well as international coverage in over 16 languages to more than 1000 newspapers and 750 broadcasters around the globe.

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