US targets China’s shipbuilding sector with new trade measures

The US announced new trade measures Thursday targeting China's maritime, logistics and shipbuilding industries, accusing Beijing of using unfair practices to dominate the global market.

"Ships and shipping are vital to American economic security and the free flow of commerce," said US Trade Representative Jamieson Greer.

"The Trump administration's actions will begin to reverse Chinese dominance, address threats to the US supply chain, and send a demand signal for US-built ships."

The actions, taken under Section 301 of the Trade Act of 1974, follow a year-long investigation by the Office of the US Trade Representative.

The measures will roll out in two phases.

In the first phase, no fees will be imposed for 180 days.

After that period, the US will introduce gradually increasing fees on Chinese vessel owners and operators based on net tonnage per US voyage; operators of Chinese-built ships based on tonnage or container volume; and foreign-built car carrier vessels, with a structure favoring US-built alternatives.

The second phase, set to begin in three years, will impose incremental restrictions over 22 years on transporting liquefied natural gas (LNG) using foreign-built vessels, in a bid to support US-built LNG carriers.

Section 301 allows the US to take action against foreign practices deemed unfair or harmful to American commerce.