China's COSCO dismisses US military spying claims as false

China's state-owned shipping giant COSCO rejected allegations it used concealed equipment on its vessels to collect intelligence for Beijing, calling the claims "totally unfounded" and false.

Reuters on Tuesday reported, citing two senior Trump administration officials, that COSCO used the equipment to spy on military communications near the coastlines of target nations including the United States.

The officials, who spoke on condition of anonymity, said COSCO has a decades-long intelligence-collection partnership with Beijing, which allows China to collect communication signals from vessels and aircraft operating across Europe, North America and Asia.

"COSCO Shipping has always adhered to market-oriented operations and compliance practices across all our global businesses," the company said in a statement.

"All communication, navigation, safety and operational equipment installed on our vessels is used solely for legitimate commercial purposes, including navigation safety, ship-to-shore communications and emergency response," it said.