ABB accused of failing to deal with ‘alarming’ safety vulnerability in China-made cranes

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US lawmakers have accused ABB of failing to deal with “alarming” vulnerabilities in China-made cranes that use its know-how, saying the Swiss industrial conglomerate’s ties with Chinese language state-owned firms may jeopardise nationwide safety.

ABB disclosed on Friday it had obtained a letter from the US Home of Representatives committees on homeland safety and on China that complained it had “did not sufficiently reply” questions on “cyber safety dangers, international intelligence threats and provide chain vulnerabilities at seaports in the US”.

The letter stated that in a single occasion ABB’s response to a request for data from the committees made in July was “troubling” and implied it might need complied with the Chinese language Communist get together’s “authoritarian nationwide intelligence, cyber safety, or nationwide safety legal guidelines”.

The letter to ABB’s chief govt Björn Rosengren, a replica of which has been seen by the Monetary Occasions, highlights growing scrutiny by US legislators of worldwide firms with operations or pursuits in China.

The letter cited a specific concern about ABB’s work with state-owned Shanghai Zhenhua Heavy Industries (ZPMC), which it stated put in the Swiss group’s software program techniques on ship-to-shore cranes bought to the US.

The committees stated that they had engaged “in a good-faith effort to work with ABB to treatment the alarming safety vulnerability created by the set up of ABB tools and know-how by ZPMC engineers in China”.

ZPMC’s set up of that tools was “unacceptable and should be remedied with none additional delay”, committee chairs Mark Inexperienced and Mike Gallagher stated within the letter, which was first reported by Swedish broadcaster Sveriges Radio.

ABB stated it had been participating with the committees since July to “reply to their requests with care” in a well timed method and was “working in keeping with all related US laws”.

“ABB’s crane software program know-how is supplier-independent and put in on cranes manufactured by main crane builders together with Chinese language firms,” it stated. “These cranes are purchased by US ports from Chinese language and different firms, not from ABB.”

ZPMC places of work in China and Europe didn’t instantly reply to requests for remark.

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

The committees’ letter referred to as on Michael Grey, ABB nation holding officer for the US, to testify earlier than them in an upcoming public listening to “in mild of the breakdown in good religion negotiations and to raised perceive how ABB is securing its software program and {hardware} on US ship-to-shore cranes”.

The letter added that it was very important that ABB defined its relationships with Chinese language state-owned enterprises “and whether or not ABB ought to be trusted to proceed engaged on behalf of US authorities businesses”.

The FT reported final week that the Home China committee had requested the chief executives of US chipmakers to testify earlier than Congress as a part of its intensifying scrutiny of firms with pursuits in China.

The committee despatched letters to Intel, Nvidia and Micron summoning their chief executives to testify, in response to a number of folks acquainted with the state of affairs. The panel has not beforehand held hearings with CEOs from any business because it was created to strengthen Congress’s deal with doable threats from China.

Extra reporting by Patricia Nilsson in Frankfurt

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