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Chinese crane firm denies posing security risk at US ports amid investigation
A Chinese firm under investigation by Congress over posing a potential cybersecurity threat at U.S. ports said that its cranes don’t pose a national security risk.
Shanghai Zhenhua Heavy Industries (ZPMC) is under investigation by the House Select Committee on the Strategic Competition between the U.S. and the Chinese Communist Party and the House Homeland Security over its installation of equipment onto ship-to-shore (STS) cranes bound for U.S. ports.
“ZPMC takes the U.S. concerns seriously and believes that these reports can easily mislead the public without sufficient factual review,” the company said in a filing. “The cranes provided by ZPMC do not pose a cybersecurity risk to any ports.”
Lawmakers wrote to the company at the end of February and informed the company that they identified “serious concerns” about ZPMC’s relationship with the CCP. They noted that some cellular modem components found installed on cranes that “do not appear in any way to contribute to the operation of the STS cranes or onshore infrastructure, raising significant questions as to their intended applications.”
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The congressional letter to ZPMC noted that, “In 2021, the Federal Bureau of Investigation (FBI) discovered intelligence gathering equipment on board a vessel delivering ZPMC cranes to the Port of Baltimore.”
The letter added that ZPMC “accounts for nearly 80 percent of the ship-to-shore (STS) cranes in use at U.S. maritime ports” and that many of those cranes were built in an area adjacent to a shipyard “where the [People’s Liberation Army Navy’s] most advanced warships are built, including the PRC’s third aircraft carrier and its fleet of Type 055 and Type 052 destroyers.”
“The Committees have serious concerns that this proximity to the PLAN’s main shipyard provides malicious CCP entities, including its intelligence agencies and security services, with ample opportunity to modify U.S.-bound maritime equipment, exploit it to malfunction, or otherwise facilitate cyber espionage thereby compromising U.S. maritime critical infrastructure,” the letter continued.
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ZPMC installed equipment from Swiss engineering group ABB onto STS cranes used at U.S. ports. ABB has said it sold control and electrification equipment to many crane manufacturers, including Chinese companies that in turn sold cranes to U.S. ports.
The letter noted that the committees learned in briefings with U.S. ports and federal law enforcement agencies that ZPMC and ABB have “repeatedly made requests for remote access to U.S.-based STS cranes and other U.S. maritime infrastructure components.”
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The lawmakers asked ZPMC to explain whether any Chinese government entities, including intelligence or security agencies, have ever requested that ZPMC obtain remote access to U.S.-based STS cranes.
The House Select Committee on the CCP sent a letter to ABB in July 2023 requesting documents and information about its relationship with ZPMC.
It sent ABB a follow-up letter in January 2024 to request that its U.S. affiliate testify in a public hearing and said the company has “failed to cooperate in good faith” with the probe and “has lacked the appropriate urgency in responding to calls for increased security.”
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ABB told FOX Business in a statement that, “Since July 2023, ABB has engaged with the U.S. House of Representative Committee on Homeland Security and the Select Committee on the Strategic Competition between the United States and the Chinese Communist Party as they research port security issues.”
“We take the Committees’ requests seriously. We disagree with the characterization of ABB’s work in the port sector,” the statement concluded.
Reuters contributed to this report.
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Predictions for Mortgage Rates in 2024: What to Expect
As we look ahead to 2024, many homeowners and prospective buyers are wondering what to expect when it comes to mortgage rates. The landscape of the housing market is constantly changing, so it’s important to stay informed about trends and predictions. In this blog post, we will discuss some factors that could impact mortgage rates in 2024 and what homeowners and buyers can expect.
One factor that could impact mortgage rates in 2024 is the overall state of the economy. If the economy is strong and growing, we may see higher mortgage rates as the Federal Reserve looks to combat inflation. On the other hand, if the economy is stagnant or in a recession, we may see lower mortgage rates as the Fed looks to stimulate growth. It’s important to keep an eye on economic indicators such as GDP growth, unemployment rates, and inflation to get a sense of where mortgage rates may be heading.
Another factor that could impact mortgage rates in 2024 is Federal Reserve policy. The Fed plays a key role in setting interest rates, and their decisions can have a ripple effect on mortgage rates. If the Fed decides to raise interest rates in response to inflation, we may see an increase in mortgage rates. Conversely, if the Fed decides to lower interest rates to stimulate growth, we may see a decrease in mortgage rates. Keeping up with the latest news and announcements from the Fed can give homeowners and buyers a sense of where mortgage rates may be heading.
In terms of specific cities and local mortgage companies, it’s important to note that mortgage rates can vary depending on location and lender. For example, in a city like New York City, where real estate prices are high, mortgage rates may be higher compared to a city like Indianapolis, where real estate prices are lower. Additionally, local mortgage companies may offer competitive rates and terms compared to national lenders. For example, in New York City, local lenders like Quontic Bank and CrossCountry Mortgage may offer specialized products and services tailored to the needs of local buyers.
It’s important for homeowners and buyers to shop around and compare rates from multiple lenders to ensure they are getting the best deal. Websites like Bankrate and LendingTree can be helpful resources for comparing rates and terms from multiple lenders. Homeowners and buyers should also consider working with a mortgage broker who can help them navigate the lending process and find the best mortgage product for their needs.
In conclusion, predicting mortgage rates in 2024 is not an exact science, but there are several factors that could impact rates. By staying informed about economic indicators, Federal Reserve policy, and local market trends, homeowners and buyers can make informed decisions about their mortgage. Shopping around and comparing rates from multiple lenders is key to ensuring you are getting the best deal on your mortgage. Whether you’re looking to refinance your existing mortgage or buy a new home, it’s important to stay informed and be proactive in managing your mortgage.
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