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U.S. Concludes Hearings on Proposed Port Fees for Chinese-Built Ships

The Biden administration weighs a contentious policy to promote U.S. shipbuilding while industries warn of economic fallout and supply chain disruptions.

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(FILES) In this file photo taken on November 20, 2024 the Chinese ship, the bulk carrier Yi Peng 3 is anchored and being monitored by a Danish naval patrol vessel (unseen) in the sea of Kattegat, near the City og Granaa in Jutland, Denmark. Denmark's navy said on November 20, 2024 it was shadowing a Chinese cargo vessel in the Baltic Sea, a day after Finland and Sweden opened investigations into suspected sabotage of two severed undersea telecoms cables. "The Danish Defence can confirm that we are present in the area near the Chinese ship Yi Peng 3," the military wrote in an email to AFP, adding that it would make no further comment for the time-being. (Photo by Mikkel Berg Pedersen / Ritzau Scanpix / AFP) / Denmark OUT (Photo by MIKKEL BERG PEDERSEN/Ritzau Scanpix/AFP via Getty Images)
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Overview

  • The U.S. Trade Representative has finished public hearings on a proposal to impose port fees of up to $1.5 million per call on Chinese-built ships.
  • The policy aims to counter China's dominance in shipbuilding and bolster the U.S. shipbuilding industry, which produces only five ships annually compared to China's 1,700.
  • Critics, including agriculture and energy groups, argue the fees could raise shipping costs, disrupt supply chains, and harm U.S. exporters' global competitiveness.
  • Supporters highlight national security concerns and the need to reduce reliance on Chinese manufacturing, with 72% of Americans backing the initiative according to a recent survey.
  • The administration is now reviewing industry feedback, with a decision on the policy expected in the coming weeks.