News / 'Military asset' listing sees Cosco and CCA barred from Pentagon contracts

Pentagon officials have confirmed to The Loadstar that China Cargo Airlines and Cosco face being blacklisted from US government-related contracts.

The threat follows the firms being added to a list of Chinese commercial interests considered “military assets”, as reported by The Loadstar last week.

A US defence official told The Loadstar the 2024 National Defense Authorization Act (NDAA) prohibited the Pentagon from entering, renewing or extending contracts for goods, services or technologies with companies, or entities subject to the control of companies, listed.

However, with the list subject to annual revision, the official noted that these prohibitions would only take effect from 2026.

The official added that the NDAA also prohibited the renewal and extension of contracts where supply chains include goods or services provided by companies listed, which would become effective in 2027.

China’s largest container line last week denied suggestions it was a Chinese military company and that it had “always adhered to local laws and regulations in its multinational operations”.

Noting it would “engage relevant US authorities to clarify the facts” over its designation, Cosco stressed to customers that its inclusion did not mean sanctions of export controls.

It marks the second time in the last decade the carrier has found itself blacklisted by the US, there were sanctions against it under Mr Trump’s first administration, a result of Cosco delivering oil to Iran.