- Pentagon Blacklist and Geopolitical Impact: The U.S. designates COSCO and other Chinese maritime firms as PLA-linked, increasing pressure on Beijing’s logistics sector.
- Chinese Expansion in the Mediterranean: COSCO strengthens its presence in Italy, while its control of Piraeus has already raised security concerns in the U.S. and EU.
- IMEC and Trieste’s Strategic Role: The Pentagon’s move fuels discussions on shifting IMEC’s European entry point from Greece to Italy, with Trieste as a key alternative.
The United States Department of Defense has added COSCO, the world’s largest shipping company, to a growing list of Chinese firms it considers to have ties with the People’s Liberation Army (PLA). The move, while not carrying immediate legal penalties, is expected to discourage American businesses from engaging with COSCO and other affected entities due to their perceived military affiliations.
Alongside COSCO, the Pentagon’s blacklist includes other key players in China’s maritime and energy industries. Among them are China State Shipbuilding Corporation (CSSC), the nation’s leading shipbuilder, and China National Offshore Oil Corporation (CNOOC), the country’s dominant offshore oil explorer. Additional shipping-related firms identified as military-linked include China International Marine Containers (CIMC), the world’s largest container manufacturer, China Communications Construction Group, a major global port infrastructure developer, and Sinotrans & CSC Holdings, one of China’s top shipowners.
This is not the first time COSCO has been targeted by Washington. In 2019, the U.S. imposed sanctions on COSCO’s tanker fleet for a few months over its transportation of Iranian oil. That decision caused significant market disruption, with very large crude carrier (VLCC) rates surging to an unprecedented $200,000 per day.
As geopolitical tensions continue to shape the maritime sector, the implications of the U.S. government’s actions on Chinese and Russian shipping-related firms remain a key issue for global trade and security analysts alike.
Meanwhile, COSCO has been expanding its presence in the Eastern Mediterranean, introducing a new service that includes stops in Venice and Ravenna. This development raises concerns for Italy, as deeper ties with a company flagged by the U.S. for its military connections could have economic and security ramifications. The Italian government must carefully assess the strategic implications of allowing COSCO to strengthen its foothold in national ports, balancing economic interests with broader geopolitical considerations.
A key strategic factor to consider is that since 2016, COSCO has controlled the port of Piraeus in Greece, a major maritime hub. The company’s presence there has already been subject to scrutiny from both the U.S. and the EU, with concerns over security and political influence. For example, in January 2024, cause its China-links, Piraeus was excluded from an international anti-drug alliance, highlighting the growing mistrust surrounding its operations. The Pentagon’s designation of COSCO as a military-linked entity adds further weight to these concerns, particularly in the context of the India-Middle East-Europe Economic Corridor (IMEC). While current plans anticipate the corridor’s European entry point in Greece, this development fuels discussions about shifting key logistics hubs to Italy, particularly Trieste, given its geoeconomic and geopolitical advantages.
IMEC is designed not only as a trade route but also as a de-risking alternative to existing Europe-Asia supply chains, reducing dependency on routes vulnerable to geopolitical tensions. The increasing influence of Chinese state-linked companies like COSCO contradicts this objective, as it raises concerns over strategic autonomy and security. The Pentagon’s decision to blacklist COSCO underscores these risks, reinforcing warnings already raised by experts about the need to shield critical infrastructure from external influence. This strengthens the argument for Italy, and particularly Trieste, to emerge as a more secure and geopolitically viable alternative within the IMEC framework.
