US President Joe Biden has condemned China’s alleged exploitation of unfair policies and practices that have procured its stronghold over the global maritime, logistics, and shipbuilding sectors.
In April 2024, US Trade Representative (USTR) Katherine Tai, levied a probe which allowed the US to sanction foreign states that engaged in practices that are “unjustifiable” or “unreasonable,” or burden US commerce under Section 301 of the Trade Act of 1974. The probe came following requests from the United Steelworkers and four other US unions.
Media reported on an undisclosed source which claimed that investigators found that China sought dominance in the shipbuilding and maritime industry by leveraging financial support , restricting foreign firms, forcing technology transfers, engaging in intellectual property theft, and implementing favourable procurement policies.
According to the tip, Beijing also “severely and artificially suppressed China’s labour costs in the maritime, shipbuilding and logistics sectors.”
Media reported the likelihood that the incoming Trump administration would address such concerns with newly imposed tariffs and port fees on Chinese-built vessels in the wake of the recent report.
“China’s targeting of the maritime, logistics and shipbuilding sectors for dominance is the greatest barrier to the revitalisation of US industries in these sectors,” the report concluded .
Scott Paul, President of the American Alliance for Manufacturing, a nonprofit labour-business partnership, said he understood that the findings were compelling: “My understanding is that… a process will be laid out to try to stop the erosion of our shipbuilding industrial base and to start it growing again.”
“We’re way too dependent on China in particular. We do not have surge capacity. We have very little shipbuilding capacity, and for a superpower that’s completely unacceptable,” Paul said.
There was no immediate response from the USTR, the White House, or President-elect Donald Trump’s transition team.
Chinese officials were also unavailable for comment, as reported.
Late last year, the U.S. Environmental Protection Agency (EPA) directed a $3 billion grant to fund zero-emission port equipment and infrastructure as well as climate and air quality planning for US ports.
