China Strongly Opposes U.S. Investigation into Maritime, Logistics, and Shipbuilding Industries

China has vehemently opposed the recent investigation initiated by the U.S. into its maritime, logistics, and shipbuilding industries, labeling the move as a “mistake on top of a mistake.” The Chinese ministry of commerce released an official statement asserting that the U.S. was providing “discriminatory” subsidies to its domestic industries despite this fact, they accused China of engaging in ‘non-market practices.’ China defended the development of its industries as a result of technological innovation and active participation in market competition.

The Office of the U.S. Trade Representative launched a probe under the Trade Act of 1974, Section 301, alleging that China had used “unfair, non-market policies and practices” to dominate the maritime, logistics, and shipbuilding sectors. In response, the Chinese commerce ministry criticized the U.S. for its decision, calling it a mistake and urged the U.S. to respect multilateral rules. Beijing vowed to take all necessary steps to defend its rights and interests.

Union Petition and U.S. Trade Actions

The investigation coincides with a petition filed by five national labor unions requesting the U.S. to probe China’s policies and practices in these sectors. U.S. Trade Representative Ambassador Katherine Tai promised a thorough investigation into the concerns raised by the unions. President Joe Biden has also instructed the USTR to triple tariffs on Chinese steel and aluminum imports to safeguard American industries. The White House cited Chinese policies and subsidies that undercut high-quality U.S. products with artificially low-priced alternatives.

During an address to union workers in Pittsburgh, President Biden accused China of engaging in unfair trade practices and ‘cheating’ in its steel trade. The U.S. has been critical of China’s use of non-market policies and practices to gain a competitive edge in various sectors, both domestically and globally.

The tensions between China and the U.S. regarding trade practices continue to escalate, with each side accusing the other of unfair conduct. The outcome of the investigation into China’s maritime, logistics, and shipbuilding industries remains to be seen, but it is clear that both countries are committed to protecting their respective interests in the global market.