Independent journal on economy and transport policy
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TRADE
The latest act of the Biden administration is to accuse China of aiming for dominance in the maritime, logistics and shipbuilding sectors
Harsh reaction from the Ministry of Commerce in Beijing and the Chinese shipyards' association
Washington/Pechino
January 17, 2025
On the verge of the Biden administration, and on the eve of the
of Monday's Inauguration Day which will inaugurate
Donald Trump again as president of the United States, the United States
Trade Representative (USTR), the body that supports the president
in the field of international trade, has
presented yesterday the conclusions of the investigation pursuant to the Section
301 of the Trade Act of 1974, which allows the president to adopt
measures to counter any action that is deemed to harm the
U.S. trade. The conclusions highlight that the
The People's Republic of China is paying particular attention to the
maritime, logistics and shipbuilding sectors in order to
gain dominance in these markets, a dominance that - in the opinion
of the USTR - "is unreasonable and burdens or limits the
U.S. trade, and is therefore "actionable"
pursuant to Section 301.'
According to the USTR, 'the objective of the dominance of the
People's Republic of China is unreasonable because
displaces foreign companies, deprives market-oriented companies and
workers of business opportunities and reduces the
and creates dependencies on the People's Republic of China,
increasing risks and reducing supply chain resilience.
The goal of dominance of the People's Republic of China - for
the USTR - is also unreasonable because of the overtime
Beijing's control over its economic actors and these sectors."
Among the other findings contained in the report, it is highlighted, as
reported by the American trade unions, that "the consolidation of the
dominance of the People's Republic of China means that the
U.S. foreign trade is "carried out"
on ships built in China, financed by Chinese institutions of
state-owned, owned by companies
navigation and is dependent on an infrastructure
maritime and global logistics increasingly dominated by the
China".
"Today, the United States," Katherine Tai stressed,
who leads the USTR and is therefore a representative of the trade
of the Biden administration - are ranked 19th in the world in the
commercial shipbuilding industry and build less than
five ships per year, while the People's Republic of China
builds more than 1,700. In 1975, the United States was at the
first place and we built more than 70 ships a year. The domain
targeted by Beijing on these sectors undermines fair and
market-oriented environment, increases risks to economic security and
represents the biggest obstacle to revitalization
of U.S. industries, as well as communities
that depend on them. These conclusions under Section 301
set the stage for urgent action to invest in America
and to strengthen our supply chains."
The Chinese Ministry of Commerce replied that the investigation
"is characterized by evident unilateralism
and protectionism. Previously, the World Trade Organization -
recalled the spokesman of the ministry - had established that
the imposition by the United States of Section 301 duties
on China violated WTO rules and had met
the opposition of many WTO members. The US investigation
on the 301 - according to Beijing - is conducted for needs
domestic policies and to curb China's development. It is a
serious violation of the multilateral trading system and
rules of international trade".
In addition, the Chinese Ministry denounced that "the report
US 301 Survey on the Maritime, Logistics and
China's shipbuilding industry is full of false accusations
against China. Historically - highlighted the spokesman of the
DICASTERY - The decline of the U.S. shipbuilding industry has not
it has nothing to do with China. Even before the rise
of the Chinese shipbuilding industry, the global market share
of the U.S. shipbuilding industry was negligible. From a
realistic perspective, the development of the shipbuilding industry
is certainly not based on the so-called "non-toxic practices"
but on a complete industrial system,
on well-trained engineers and industrial workers and on a
open entrepreneurial approach. China's maritime transport market is
has always been open to the global market and has never adopted
discriminatory policies against foreign ships or companies.
China's industrial policy is predominantly
more than binding, and treats Chinese companies and
foreigners in the same way. On the other hand, the Biden administration
has provided substantial subsidies to national industries through
the Inflation Reduction Act and the Chips and Science Act, many of the
which are discriminatory aids. Policies and practices in
seriously undermine the effectiveness and authority of the
of WTO rules and are really non-
market".
"China - concluded the spokesman - urges
the Biden administration to respect the facts and the rules
multilateral principles, to adhere to the principles of the market economy and
fair competition, to address reasonable concerns
and the legitimate requests of companies from both countries and to
stop shifting the blame for development problems to China
U.S. domestic industrial. China will monitor
U.S. actions and will take steps
necessary to defend their legitimate rights and interests".
The China Association of the National Shipping Industry (CANSI)
expressed "strong dissatisfaction and firm opposition"
compared to the American initiative implemented through a survey that
The Chinese Shipbuilding Association believes that it draws "conclusions
based on a poorly done investigation, full of falsehoods and
distortions". According to CANSI, "the USTR, based on
false accusations by the United States, ignored the opposition
of stakeholders in the global maritime industry, has ignored the
facts, insisted on launching a unilateral investigation and drew
wrong, irresponsible and unprofessional conclusions that
will seriously disrupt the global maritime logistics system and
international trade order, seriously hampering the
Moving forward with the green transformation of the maritime industry
global".
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