COSCO SHIPPING Group has rejected foreign media reports alleging that its commercial vessels carry “covert equipment” to intercept military communications and collect intelligence.

In an official statement issued on September 3, COSCO SHIPPING said the allegations, reportedly based on comments from anonymous U.S. officials, have “no factual basis.”

The group stressed that it operates internationally in accordance with market principles and regulatory requirements. Communications, navigation, safety and operational equipment installed on its vessels is used solely for normal commercial purposes, including navigation safety, ship-shore communications and emergency response.

COSCO SHIPPING said it does not use commercial vessels to intercept military communications or gather intelligence as alleged, and strongly opposes inaccurate information that damages its reputation or interferes with its international operations. The company also reserved the right to take legal action to protect its reputation.