Overview

• The U.S. Trade Representative's office concluded a Section 301 investigation, finding China's shipbuilding and maritime policies 'unreasonable' and harmful to U.S. commerce.
• The report alleges that China's state-subsidized shipbuilding sector undermines fair competition, displaces foreign firms, and creates global supply chain vulnerabilities.
• The U.S. builds fewer than five ships annually, compared to China's production of over 1,700 ships, a stark contrast to the 1970s when the U.S. led global shipbuilding.
• China's Ministry of Commerce rejected the findings, claiming they are politically motivated and based on false accusations.
• The findings pave the way for potential U.S. actions, including tariffs or port fees, with bipartisan legislation also proposed to revitalize American shipbuilding and reduce reliance on Chinese vessels.