U.S. Finds China's Shipbuilding Practices Unreasonable

The U.S. Trade Representative's recent report has concluded that China's dominance in the maritime, logistics, and shipbuilding sectors is 'unreasonable' and actionable under U.S. trade law. The report highlights China's aggressive strategies, including subsidies and unfair labor practices, which have significantly decimated U.S. shipbuilding capacity, now reduced to fewer than five ships annually compared to China's 1,700. In response, Chinese officials have condemned the report as protectionist and full of false accusations, asserting that it violates World Trade Organization rules and is politically motivated. They argue that the decline of the U.S. shipbuilding industry predates China's rise and is not due to unfair practices. The findings open the door for potential U.S. retaliatory measures, such as tariffs or port fees on Chinese-built vessels, as the U.S. seeks to revitalize its maritime industries. In this context, the Biden administration is preparing to transition power to the incoming Trump administration, which has indicated it will continue to impose tariffs on Chinese goods.