China’s Commerce Ministry has rejected a U.S. investigation into its shipbuilding, maritime, and logistics sectors, labeling it as "unilateralism and protectionism." The response follows a report from the U.S. Trade Representative (USTR), which claims China’s dominance in these industries is “unreasonable” and may harm U.S. commerce.
The probe, launched in April last year at President Joe Biden’s request, does not recommend immediate penalties but leaves further action to President-elect Donald Trump, who takes office on Monday. American unions, which pushed for the investigation, have called for tariffs or higher port fees on Chinese-built vessels.
The USTR report accuses China of artificially suppressing labor costs, forced technology transfers, and intellectual property theft. A separate study from Greek broker Intermodal highlights China’s rapid rise in shipbuilding, increasing its global order share from 10% in 2000 to nearly 65% today, while Japan and South Korea’s combined share has dropped from 78% to 31%.
Trump has already encouraged South Korean and Japanese shipyards to collaborate as a counterbalance to China’s growing dominance. As trade tensions escalate, industry experts are closely watching the next steps in U.S. policy.