China warns U.S. proposal on ship fees won’t boost domestic shipbuilding

China says the move will disrupt global supply and industrial chains while harming U.S. companies' interests

China on Monday condemned a U.S. plan to impose fees on China-linked ships, claiming the move will disrupt global supply and industrial chains while harming U.S. companies’ interests.

A spokesperson for China’s foreign ministry stated that the initiative would not revitalize the U.S. shipbuilding industry and emphasized that China would take necessary actions to protect its rights and interests.

Earlier in February, the U.S. Trade Representative (USTR) proposed charging fees of up to $1.5 million per entry for Chinese-built vessels entering U.S. ports. This is part of an investigation into China’s growing influence in the global shipbuilding, maritime, and logistics sectors, which has seen China’s share of global shipbuilding tonnage grow from 5% in 1999 to over 50% in 2023.

The proposal, published on February 21 in a Federal Register notice, includes additional shipping restrictions and a public hearing scheduled for March 24.

The USTR attributes the rise in China’s maritime power to heavy state subsidies and favorable policies for state-owned enterprises, while also noting the sharp decline in U.S. shipbuilding, which has fallen from producing 70 ships annually in 1975 to just five per year today.

The U.S. probe, launched in April 2024 under Section 301 of the Trade Act of 1974, sought to address the decline in American shipbuilding. The findings released last month, just before President Donald Trump took office, outlined new measures, including port entry fees for Chinese maritime operators and limits on Chinese access to U.S. shipping data.

Monitoring Desk
Monitoring Desk
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