China is increasing its dominance of digital information surrounding global logistics. An advisory body to the U.S. Congress has called for stronger defenses, saying this could undermine U.S. national security and put businesses at a disadvantage.

The US-China Economic and Security Commission (USCC) will release a report this week focusing on China's National Transportation and Logistics Public Information Platform (LOGINK). LOGINK is a comprehensive cargo data network that collects information on land and shipping companies inside and outside China.

The USCC is vigilant regarding both commercial and military logistics. After the coronavirus epidemic disrupted procurement by shortages of essential goods, governments have increased their focus on logistics and supply chain resilience. Earlier this year, Russia's invasion of Ukraine disrupted food exports from both countries and reduced energy supplies from Russia.

Chinese state-owned enterprises have taken advantage of their country's superiority in manufacturing to play a major role in logistics. As the world's largest exporter, China has produced some of the world's leading shipping companies, such as China Ocean Shipping Corporation (COSCO) and Merchants Group (CMG).

These carriers own port facilities, warehouses and related infrastructure on almost every continent. Even cargo that Chinese shipping companies do not handle themselves may pass through warehouses under the umbrella and be transported by land transportation subsidiaries. That information is captured in the Chinese company's data system and can be recorded in another system such as LOGINK.

LOGINK leverages public databases as well as information entered by more than 450,000 users in megac ports in China and around the world. Ports in regions participating in China's "One Belt, One Road" initiative are also eligible. Launched in 2007, LOGINK is a non-profit and supervised by China's Ministry of Transport.

Cargo data is invaluable, industry insiders say, and information about product types, destinations and prices can be useful for corporate and national strategy.

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The Wall Street Journal (WSJ) has confirmed the contents of the new USCC report. At its core is the potential security threat posed by LOGINK, which connects each participant in the supply chain, from factory to customer. LOGINK is used in ports all over China, as well as in areas outside the country where Chinese companies are operating and where there is cooperation with friendly authorities. In the view of logistics experts, it is not used in U.S. ports.

The report concluded that "the widespread use of LOGINK could increase the power and influence of the Chinese government and pose commercial and strategic risks to the United States."

China's Ministry of Transport did not immediately respond to a request for comment about LOGINK.

Given the Chinese Communist Party's "clear ambition to make the world more dependent on China and less dependent on foreign should be," he argues.