US Taps Trade Law Against China Shipbuilding Dominance

The U.S. Trade Representative (USTR) has determined that China's efforts to dominate the global shipbuilding, maritime, and logistics sectors are 'unreasonable' and warrant potential action under Section 301 of the Trade Act. This conclusion follows a probe initiated in April 2024 at the request of U.S. unions, highlighting a stark contrast between the U.S. and China, where American shipbuilding has plummeted to fewer than five ships annually compared to China's 1,700. USTR Katherine Tai emphasized that China's practices undermine fair competition and pose economic security risks, creating dependencies on the Chinese economy. The findings could set the stage for urgent actions by the incoming Trump administration to revitalize U.S. industries and strengthen supply chains. In response, China's commerce ministry expressed strong dissatisfaction, claiming the USTR’s conclusions are based on false accusations, asserting that its market is open to foreign companies. The investigation is part of a broader context of U.S.-China trade tensions, with past administrations employing Section 301 to impose tariffs on Chinese imports.