ABB accused of failing to address ‘alarming’ security vulnerability in China-made cranes

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US lawmakers have accused ABB of failing to address “alarming” vulnerabilities in China-made cranes that use its technology, saying the Swiss industrial conglomerate’s ties with Chinese state-owned companies could jeopardise national security.

ABB disclosed on Friday it had received a letter from the US House of Representatives committees on homeland security and on China that complained it had “failed to sufficiently answer” questions about “cyber security risks, foreign intelligence threats and supply chain vulnerabilities at seaports in the United States”.

The letter said that in one instance ABB’s response to a request for information from the committees made in July was “troubling” and implied it might have complied with the Chinese Communist party’s “authoritarian national intelligence, cyber security, or national security laws”.

The letter to ABB’s chief executive Björn Rosengren, a copy of which has been seen by the Financial Times, highlights increasing scrutiny by US legislators of international companies with operations or interests in China.

The letter cited a particular concern about ABB’s work with state-owned Shanghai Zhenhua Heavy Industries (ZPMC), which it said installed the Swiss group’s software systems on ship-to-shore cranes sold to the US.

The committees said they had engaged “in a good-faith effort to work with ABB to remedy the alarming security vulnerability created by the installation of ABB equipment and technology by ZPMC engineers in China”.

ZPMC’s installation of that equipment was “unacceptable and must be remedied without any further delay”, committee chairs Mark Green and Mike Gallagher said in the letter, which was first reported by Swedish broadcaster Sveriges Radio.

ABB said it had been engaging with the committees since July to “respond to their requests with care” in a timely manner and was “operating in line with all relevant US regulations”.

“ABB’s crane software technology is supplier-independent and installed on cranes manufactured by major crane builders including Chinese companies,” it said. “These cranes are bought by US ports from Chinese and other companies, not from ABB.”

ZPMC offices in China and Europe did not immediately respond to requests for comment.

The US is ABB’s biggest single market, followed by China. The group’s shares fell 3 per cent on Friday morning.

The committees’ letter called on Michael Gray, ABB country holding officer for the US, to testify before them in an upcoming public hearing “in light of the breakdown in good faith negotiations and to better understand how ABB is securing its software and hardware on US ship-to-shore cranes”.

The letter added that it was vital that ABB explained its relationships with Chinese state-owned enterprises “and whether ABB should be trusted to continue working on behalf of US government agencies”.

The FT reported last week that the House China committee had asked the chief executives of US chipmakers to testify before Congress as part of its intensifying scrutiny of companies with interests in China.

The committee sent letters to Intel, Nvidia and Micron summoning their chief executives to testify, according to several people familiar with the situation. The panel has not previously held hearings with CEOs from any industry since it was created to strengthen Congress’s focus on possible threats from China.

Additional reporting by Patricia Nilsson in Frankfurt

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