The U.S. Trade Representative (USTR) announced Thursday that China’s strategic dominance over the global shipbuilding, maritime, and logistics sectors is deemed “unreasonable” and “actionable” under U.S. trade law.
The findings, part of a USTR investigation initially reported by Reuters, do not recommend specific penalties against Beijing but leave further actions to President-elect Donald Trump, who takes office Monday.
The USTR report states that China’s targeting of these industries for dominance “burdens or restricts U.S. commerce” and is therefore actionable. Efforts to contact China’s embassy in Washington for comment were unsuccessful.
The investigation, launched in April 2024 by U.S. Trade Representative Katherine Tai, followed a petition from the United Steelworkers and four other unions under Section 301 of the Trade Act of 1974. This provision allows the U.S. to address “unjustifiable” or “unreasonable” foreign trade practices. Both the Trump and Biden administrations used this law to impose tariffs on Chinese imports starting in 2018.
Tai highlighted that U.S. commercial shipbuilding has drastically declined, producing fewer than five ships annually compared to 70 in 1975, while China builds 1,700 ships each year.
“Beijing’s dominance in these sectors undermines fair competition, poses economic security risks, and is a major barrier to revitalizing U.S. industries and the communities they support,” Tai said. She emphasized that the findings underscore the urgency of investing in domestic industries and strengthening supply chains.
United Steelworkers International President David McCall praised the report, calling it a “clear indictment” of China’s practices and urging immediate action. Trump, McCall noted, has expressed a willingness to address these issues.
The report attributes China’s dominance to its “extraordinary control” over enterprises in these sectors, which limits opportunities for market-oriented firms, reduces competition, and fosters dependence on Chinese industries. Additional advantages include China’s lack of effective labor protections, excessive steel production capacity, and control over digital logistics services.
U.S. Senator Mark Kelly described the report as evidence of the need to rebuild the nation’s shipbuilding and maritime industries, referencing his proposed legislation to support these goals.
“The PRC’s unfair trade practices have enabled China to dominate global maritime sectors, harming American workers and threatening our national security,” Kelly said.
