Biden Administration Launches Probe into China’s Unfair Shipbuilding Practices

The United States Trade Representative (USTR) has announced the launch of an investigation into alleged unfair trade practices by China in the shipbuilding, maritime, and logistics sectors. The probe was initiated in response to a petition submitted by five national labor unions, including the United Steelworkers (USW).

The unions assert that China’s pursuit of global dominance in these sectors is underpinned by aggressive and interventionist non-market policies surpassing those of any other country.

“The petition presents serious and concerning allegations of the [People’s Republic of China (PRC)] longstanding efforts to dominate the maritime, logistics, and shipbuilding sectors, cataloguing the PRC’s use of unfair, non-market policies and practices to achieve those goals,” said U.S. Trade Ambassador Katherine Tai. “The allegations reflect what we have already seen across other sectors, where the PRC utilizes a wide range of non-market policies and practices to undermine fair competition and dominate the market, both in China and globally,”

“I pledge to undertake a full and thorough investigation into the unions’ concerns,” she said.

The USTR has issued a formal notice seeking public comments and has scheduled a public hearing as part of the investigation process. The investigation is being conducted under Section 301 of the Trade Act of 1974, designed to address foreign practices that unjustifiably or unreasonably burden or restrict U.S. commerce.

The petitioning unions include the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW), the International Association of Machinists and Aerospace Workers (IAM), the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, AFL-CIO/CLC (IBB), the International Brotherhood of Electrical Workers (IBEW), and the Maritime Trades Department, AFL-CIO (MTD).

The USTR has requested consultations with China, the subject of the investigation.

“President Biden believes it is critical to understand China’s uniquely aggressive set of interventions in these sectors, and to take actions that address distortions to the global market for commercial vessels, maritime shipping, and logistics that harm American workers and shipbuilders,” the White House said in a fact sheet.

At the same time, the Biden Administration is considering tripling the tariff rate on steel and aluminum imports from China.

“American workers continue to face unfair competition from Chinese imports of steel and aluminum products, which are among the world’s most emissions-intensive. Chinese policies and subsidies for their domestic steel and aluminum industries means high-quality U.S. products are undercut by artificially low-priced Chinese alternatives produced with higher emissions,” the White House said.

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