US probe finds China unfairly dominates shipbuilding, paving way for penalties, sources say
WASHINGTON — US President Joe Biden's administration has concluded that China uses unfair policies and practices to dominate the global maritime, logistics and shipbuilding sectors, three sources familiar with the results of a months-long trade investigation told Reuters.
US Trade Representative (USTR) Katherine Tai launched the probe in April 2024 at the request of the United Steelworkers and four other US unions under Section 301 of the Trade Act of 1974, which allows the US to penalise foreign countries that engage in acts that are "unjustifiable" or "unreasonable", or burden US commerce.
Investigators concluded that China targeted the shipbuilding and maritime industry for dominance, using financial support, barriers for foreign firms, forced technology transfer and intellectual property theft and procurement policies to give its shipbuilding and maritime industry an advantage, said one of the sources, who was not authorised to speak publicly.
Beijing also "severely and artificially suppressed China's labour costs in the maritime, shipbuilding and logistics sectors," that person added, citing excerpts of the report.
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No immediate comment was available from USTR, the White House or the transition team of President-elect Donald Trump. Chinese officials were not immediately available for comment.
The probe cites data showing that China's share of the US$150 billion (S$206 billion) global shipbuilding industry has expanded to over 50 per cent in 2023 from around five per cent in 2000, largely aided by government subsidies, while once dominant US shipbuilders have seen their share dwindle below one per cent. South Korea and Japan are the next biggest shipbuilders.
The report provides a fresh cudgel for the