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September 2, 2026 • 15 mins

In this episode of the 47 Morning Update w Ben Ferguson, Ben discusses allegations involving the Chinese state-owned shipping company COSCO, broader concerns about Chinese intelligence operations, cyber campaigns including Salt Typhoon and Volt Typhoon, espionage cases involving former U.S. Navy personnel, and recent Justice Department actions targeting Chinese-linked hacking operations. The conversation focuses on what these developments could mean for U.S. national security, critical infrastructure protection, military readiness, and the increasing overlap between commercial activity and intelligence collection.

New allegations claim that a major Chinese state-owned shipping company used commercial cargo vessels to collect intelligence near U.S. coastlines and ports. If accurate, the claims would represent another example of Beijing leveraging commercial access to support broader intelligence-gathering efforts against the United States.Ben Ferguson examines reports from senior U.S. officials alleging that concealed signal intelligence equipment aboard Chinese shipping vessels was used to gather information related to military communications, encryption, and maritime activity. He argues that the allegations fit a larger pattern of Chinese espionage efforts targeting the United States across cyber, military, and government sectors.

Topics Covered:

  • Allegations that Chinese commercial cargo ships were equipped with intelligence-gathering systems
  • The reported role of COSCO and concerns about state-linked commercial operations
  • Salt Typhoon cyber intrusions targeting U.S. telecommunications networks
  • Volt Typhoon activity and threats to critical infrastructure systems
  • Justice Department actions against alleged Chinese-linked hacking campaigns
  • Espionage cases involving former U.S. Navy personnel and military information leaks

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Speaker 2 (00:37):
You're listening to the 47 Morning Update with Ben Ferguson.

Speaker 3 (00:40):
Good Wednesday morning. Nice to have you with us on
the 47 Morning Update. And we've got one massive story
for you that has a lot of tentacles. We have
learned now about a massive Chinese spying operation. using ships
that are looking like they're just commercial ships to spy
on America, container ships that are owned by the Chinese government.

(01:02):
How did they get busted and how much damage they
do to the U.S.? We're breaking it all down for you.
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It's the 47 Morning Update and it starts right now.

Speaker 2 (02:50):
Story number one.

Speaker 3 (02:51):
I want to start with a really important story that
is just broken. And it deals with China using one
of their own companies that is a shipping company to
spy on America. This news about China should get the
attention of all of us because yet again, we are
seeing just how far China will go to, well, spy

(03:12):
on the United States of America.

Speaker 4 (03:14):
According to senior U.S.

Speaker 3 (03:15):
Officials, the massive Chinese state-owned shipping company known as Costco,
not the same as a store in America, want to
be clear about that, has allegedly been doing something far
beyond moving container ships around the world. U.S. officials now
say that the Chinese company Costco and their ships have
been equipped with concealed, sophisticated, intelligence-gathering equipment. capable of collecting

(03:42):
military communications near the coastlines of the United States as
well as other nations. Now, what does this mean? Well,
these are commercial ships. They sail into ports. They travel
major shipping lanes. They operate legally around the world. But
according to not one, but two senior Trump administration officials
who spoke to Reuters, hidden aboard many of these vessels

(04:06):
were sophisticated signal intelligence systems. They said deliberately designed for
one thing, to collect information on military communications technologies and
developments in encryption. Now, the officials said that Costco has
maintained an intelligence collection relationship with With Beijing, we now

(04:27):
have learned stretching back decades. And this isn't some tiny
shipping operation. Costco, not only are they a Chinese state-owned
shipping giant, but they're deeply embedded in global commerce and
regularly calling and regularly selling into America's ports. If you've
ever been around a major port city. You've probably seen

(04:49):
the containers that have Costco on the side and the
boats that have Costco on the side as well. Now,
this allegation that Beijing has effectively found a way now
to turn ordinary looking commercial vessels into intelligence platforms, well,
is shocking, yet not really surprising. You don't need a

(05:09):
ship with Chinese Navy paint across the side. And that's
their mantra. We're going to spy on you any way
we can. And you don't need to send an obvious
intelligence vessel right up against America's coastline.

Speaker 4 (05:21):
No, no, no. China said, we've got you.

Speaker 3 (05:24):
We're going to send all of our container ships. It's
going to look like commerce. It's going to behave like commerce.
It's going to come into American ports and other ports
around the world. Now, according to the U.S. officials, concealed
equipment aboard these vessels can collect signals from ships and
aircraft operating around North America, as well as Europe and Asia.

(05:46):
And then the intelligence can help China understand our military communications,
as well as our encryption, our maritime routes, and even
provide reconnaissance and early warning regarding foreign military targets. China's embassy,
of course, they're lying right now, categorically denying this. It
says Beijing would never instruct a company, by the way,

(06:08):
they own that company, to illegally collect intelligence overseas and
calls the American allegations, quote-unquote, baseless. Now, let me explain
why this story also is very telling about other things
we know about, all right?

Speaker 4 (06:22):
This isn't an isolated incident, okay?

Speaker 3 (06:26):
Just look at what American authorities have uncovered over the
last several years, and there's a much larger picture that
begins to emerge when you connect the dots. They went
after America's telephone networks. It was called Salt Typhoon. The
Chinese government-linked hackers penetrated major telecommunications networks.

Speaker 4 (06:43):
In the U.S.

Speaker 3 (06:44):
And the FBI says the campaign resulted in the theft
of call data logs, some private communications belonging to specifically
targeted victims, and even copies of certain information connected to
court-ordered U.S.

Speaker 4 (06:57):
Law enforcement requests.

Speaker 3 (07:00):
If you don't believe me, go to thefbi.gov, and they
have the entire story. Now, there was also later reporting
that revealed the extraordinary scope of this campaign. It reached
more than 80 countries, and the FBI estimated that the
intruders likely obtained money More than 1 million call records
and targeted calls and text messages belonging to more than

(07:21):
100 Americans. Now, keyword targeted. So the 100 people they
got the info on, they wanted that info. They wanted
it badly. And that's exactly.

Speaker 4 (07:31):
What they got.

Speaker 3 (07:32):
Now, think about how valuable that intelligence could be if
you're targeting 100 people on purpose. Who are they calling?
When they're calling? Where people are moving? Who is the
United States government investigating? What communications are American law enforcement
trying to intercept? Now, this isn't stealing someone's, like, Netflix password.

(07:53):
This is hardcore intelligence collection. Then there was Vault Typhoon.
This is another one you probably never heard about, and
it may have been even more frightening. American intelligence and
cybersecurity agencies concluded at the time that the Chinese state-sponsored
Volt Typhoon hackers successfully infiltrated America's critical infrastructure networks. Now,

(08:17):
we're talking about communications networks, energy networks, transportation networks, water
and wastewater system networks as well.

Speaker 4 (08:25):
Now, this isn't a guess. This actually happened. And U.S.

Speaker 3 (08:29):
Agencies assessed with high confidence that this wasn't simply traditional espionage.
They said the hackers were pre-positioning themselves inside American networks
so they could potentially disrupt critical infrastructure in the future
with it being a major attack. Again, all of this
is coming from the FBI.gov. Now, I want you to

(08:50):
just think about a scenario. Imagine a real confrontation over Taiwan.
America begins moving forces into the Pacific, and then suddenly
utilities experience problems in the U.S., Then transportation networks are disrupted.
Then communication systems are hardcore attacked and shut down. Then
our water infrastructure starts having problems. That's why this is

(09:15):
different from just simply stealing secrets or spying in general.
This is about creating the ability for China to cause
chaos inside the United States of America during a future conflict. Now,
the FBI, under multiple administrations, Republicans and Democrats in charge,
have said China's hacking program is larger than that of

(09:39):
every other major nation in the world combined and estimated
that Chinese hackers outnumber FBI cyber personnel by at least
50 to 1. And just last week, there was another
massive Chinese hacking operation.

Speaker 4 (09:53):
You probably didn't hear about it.

Speaker 3 (09:55):
On August 26th, the Justice Department announced that it had
disrupted another Chinese-linked full-blown operation.

Speaker 4 (10:03):
Now, the targets.

Speaker 3 (10:05):
Now, think about how brazen you have to be if
you're China to do this. They targeted the Justice Department, NASA,
the Federal Reserve... The United States Senate, the Department of Energy,
Health and Human Services, the National Institutes of Health, defense
contractors with big contracts with our military, financial institutions in

(10:26):
the U.S., and American universities. Now, again, according to the
Justice Department, ask yourself, why didn't you hear about this
in the media? by a Chinese-based company whose customers included
China's Ministry of State Security and the People's Liberation Army.
The campaign had been operating without us knowing about it

(10:48):
since at least 2018. And the government said some intrusions
resulted in actual stolen data. So within the span of days,
Americans have now learned about one alleged Chinese operation reaching
deep into government computer networks since 2018. And then another one,

(11:09):
another intelligence program operating from commercial ships off the coastlines
and in our ports. China has also targeted the U.S.
military from the inside as well. And this isn't theoretical either.
Earlier this year, former U.S. Navy sailor, a guy by
the name of Wee, was sentenced to 200 months, more

(11:29):
than 16 years, in federal prison for spying for China.

Speaker 4 (11:33):
Wee served aboard the USS Essex in San Diego.

Speaker 3 (11:37):
And according to the Justice Department, A Chinese intelligence officer
recruited him, and we ultimately provided thousands of pages of
technical and operating information involving American Navy warships. And if
you think it costs a lot of money to turn
somebody against the U.S., apparently it doesn't, because we was
paid about $ 12, 000. That's it for selling American military secrets.

(12:02):
And according to evidence presented at trial, we himself recognized
what was happening. He told another sailor he believed he
was dealing with a Chinese intelligence organization and understood that
what he was being requested to do certainly looked like espionage.
Yet he continued. He was eventually convicted of espionage and
other crimes. And there was also another Navy sailor, another

(12:25):
guy by the name of Zhao, who admitted to receiving
nearly 15,000 in bribes from a Chinese intelligence officer.

Speaker 4 (12:32):
And what did China want? Sensitive military information.

Speaker 3 (12:36):
Zhao admitted transmitting that information that included details about American
military exercises.

Speaker 4 (12:41):
And operational security.

Speaker 3 (12:43):
Prosecutors said the material included information concerning naval force movements,
and our landings, maritime operations, and logistics. All of this
from the Justice Department. Now, this is exactly what China
is good at. This is how hardcore they're going after
the United States of America. And if you want one
more example of just how bad it's gotten, you have

(13:06):
an alleged attempt to recruit more American military personnel just
last year. The Justice Department charged not one but two
Chinese nationals in a Ministry of State Security operation. Authorities
said the men participated not only in an intelligence gathering
involving U.S. Navy personnel and bases, But they helped facilitate
a $ 10, 000 cash dead drop and participate in efforts to

(13:29):
identify and recruit American military personnel as potential Chinese intelligence assets.
One allegedly visited a naval installation in Washington state and
a recruiting center in California. According to the government, information
on Navy recruits was also collected and transmitted to the
Chinese intelligence operation. So we're no longer simply talking about

(13:51):
China trying to hack computers from thousands of miles away.
American authorities are now saying, listen up. This is a
full-blown operation designed to recruit human beings inside our government,
inside our military installations, and spying on us at every level,
including now using their own Chinese cargo ships to gain

(14:13):
intelligence information about our military operations.

Speaker 4 (14:17):
Now, how did this go on for so long? It's
pretty clear.

Speaker 3 (14:22):
The prior administrations either knew about it and looked the
other way and didn't care, or they were asleep at
the wheel for a long time since at least 2018.
Thank goodness President Trump now has actually made this a priority.
And those in our government are going after the people
that are betraying us each and every day. So welcome

(14:42):
to what warfare looks like in 2026. One thing is
for sure, the president's doing exactly what he needs to
to protect America and put us first.

Speaker 2 (14:51):
Thank you for listening to the 47 Morning Update with
Ben Ferguson. Please make sure you hit subscribe wherever you're
listening to this podcast right now. And for more in-depth news,
also subscribe to the Ben Ferguson podcast, and we will
see you back here tomorrow.
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