2024-01-19 09:49:21
The activities of Swiss engineering group ABB in China are being examined by two US Congressional committees tasked with investigating security threats and risks posed by Beijing, according to documents released on Friday.
House committees sent a letter to ABB this week, inviting executives to public hearings to clarify the company’s relationship with a Chinese state-owned company that they say raises “significant concerns.” .
ABB shares fell 2.5% on Friday morning, after Swedish radio Sverige reported on the approach of the Homeland Security Committee and the Special Committee on Strategic Competition between the United States and the Chinese Communist Party.
ABB, which makes electric chargers, industrial robots and factory motors and drives, said it was reviewing the letter and taking the matter seriously.
The letter sent to ABB chief executive Bjorn Rosengren raises concerns about the installation of ABB equipment by Shanghai Shenhua Heavy Industries (ZPMC), a Chinese state-owned company, on dockside ship cranes bound for the United States. -United.
The committees wanted to examine potential cybersecurity risks, foreign intelligence threats, and supply chain vulnerabilities at U.S. seaports,” according to the letter published by the Politico news site.
There was no immediate comment from the Chinese government and the ZPMC.
In their letter, the committees request information from ABB about its business relationships with ZPMC, as well as its work with U.S. defense, intelligence and national security agencies, specifying that they wish to examine whether there is a conflict of interests.
“It is essential that ABB explains its relationships with state-owned enterprises in the PRC (People’s Republic of China) and whether it can continue to work on behalf of US government agencies while collaborating with entities owned, controlled, subsidized or influenced by the PRC,” the commissions assert.
“Allowing ZPMC to install ABB equipment and technology in China on cranes bound for the United States is unacceptable and must be corrected without further delay.
Although ABB provided documents to respond to last year’s requests, many important questions remained unanswered, according to the letter.
ABB confirmed it had received the letter and said it would provide a response “if appropriate”.
“ABB is a provider of electrical and automation technologies and we take this matter seriously,” the company said in a statement.
The company considers China its second largest market after the United States. (Reporting by John Revill; Writing by Andrew Heavens)
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