US Investigates China's Shipbuilding Practices

A recent investigation by the Biden administration has concluded that China employs unfair practices to dominate the global shipbuilding and maritime sectors. Launched in April 2024 at the request of U.S. unions, the probe under Section 301 of the Trade Act of 1974 identified China's use of financial support, barriers for foreign competition, forced technology transfers, and intellectual property theft as major tactics for gaining an advantage. China's share of the global shipbuilding market surged to over 50% in 2023, a stark increase from around 5% in 2000, while U.S. shipbuilders now control less than 1%. The findings align with previous U.S. criticisms of China's industrial policies and could lead to proposed tariffs or fees on Chinese-built vessels. The report provides the incoming administration with grounds to address these trade imbalances, echoing similar actions taken during the Trump administration. U.S. officials and unions are advocating for measures to revitalize domestic shipbuilding capabilities against this competitive backdrop.