USTR launches probe into China’s dominance in maritime, logistics, shipbuilding sectors
The USTR has formally announced its intention to solicit public comments and hold a public hearing as part of the investigation
The United States Trade Representative (USTR) has launched an investigation into the acts, policies, and practices of China, focusing on its alleged dominance in the maritime, logistics, and shipbuilding sectors.
In addition, US President Biden also calls on the trade representative to consider tripling the existing tariff rate on Chinese steel and aluminum imports from the existing rate of 7.5%.
This move comes yesterday (17 April) in response to a petition filed by five US labour unions, prompting the USTR to announce the investigation under Section 301.
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The petition presents serious and concerning allegations of China's longstanding efforts to dominate the maritime, logistics, and shipbuilding sectors, cataloguing the China's use of unfair, non-market policies and practices to achieve those goals, said USTR Ambassador Katherine Tai.
The allegations reflect what we have already seen across other sectors, where China utilises a wide range of non-market policies and practices to undermine fair competition and dominate the market, both in China and globally, she said.
"I pledge to undertake a full and thorough investigation into the concerns of unions," Katherine added.
The USTR has formally announced its intention to solicit public comments and hold a public hearing as part of the investigation.
This inquiry falls under Section 301 of the Trade Act of 1974, which aims to tackle unfair foreign practices impacting US commerce.
The provision offers a means to address unjustifiable, unreasonable, or discriminatory actions by foreign governments that impede or constrain US commerce.
Under the Section 301 provisions of the Trade Act, interested parties have the opportunity to petition the US.
The trade representative to probe a foreign government's actions, policies, or practices and to implement suitable measures in response.
On 12 March, five US labour unions submitted a petition, urging an investigation into China's activities in the maritime, logistics, and shipbuilding sectors with regards to dominance.
The five petitioner unions are as follows: the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO CLC (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).
