Month: February 2025
USTR Seeks Public Input on Trade Measures Against China’s Maritime Dominance
The Office of the United States Trade Representative (USTR) is requesting public comments on proposed trade actions in response to China’s growing control over the global maritime, logistics, and shipbuilding industries. Following a Section 301 investigation, USTR determined that China’s policies have disadvantaged U.S. businesses and workers, prompting potential countermeasures.
Background of the Investigation
The investigation began in April 2024 after several U.S. labor unions filed a petition citing China’s long-standing efforts to dominate the shipbuilding and logistics sectors. Over the past three decades, China has significantly expanded its control, increasing its global shipbuilding market share from under 5% in 1999 to over 50% in 2023. Additionally, China now produces 95% of the world’s shipping containers and 86% of intermodal chassis, strengthening its influence over global trade logistics.
According to the USTR’s findings, China’s industrial policies have created unfair competitive conditions by displacing foreign businesses, limiting commercial opportunities, and posing economic security risks. As a result, USTR has determined that action is necessary under Section 301 of the Trade Act of 1974.
Proposed Trade Actions
To address China’s competitive advantage, the USTR is considering several measures:
- Service Fees on Chinese Shipping Operators – A fee of up to $1,000,000 per vessel entry into U.S. ports for operators with Chinese-built vessels.
- Tariffs on Operators Using Chinese-Built Ships – Additional fees for companies that operate or have pending orders for Chinese-manufactured vessels.
- Incentives for U.S.-Built Vessels – A system of fee reimbursements for operators using U.S.-manufactured ships.
- Shipping Restrictions on U.S. Exports – A phased-in requirement that a portion of U.S. goods be transported on U.S.-flagged and U.S.-built vessels.
- Security Measures Against Chinese Logistics Platforms – Possible restrictions on the use of LOGINK, a Chinese-developed logistics data platform, due to security concerns.
Public Comment Period and Hearing Details
The USTR is encouraging stakeholders to provide feedback on these proposed actions. The key deadlines are as follows:
- February 21, 2025 – Public comment period opens.
- March 10, 2025 – Deadline to request participation in the public hearing.
- March 24, 2025 – Deadline to submit written comments.
- March 24, 2025 – Public hearing at the U.S. International Trade Commission in Washington, D.C.
- Seven days after the hearing – Deadline for post-hearing rebuttal comments.
Comments and requests to participate in the hearing can be submitted via USTR’s online portal at https://comments.ustr.gov/s/ using docket numbers USTR–2025–0002 (for written comments) and USTR–2025–0003(for hearing requests).