Connect with us

Hi, what are you looking for?

Business

US trade envoy finds China shipbuilding policies ‘actionable’

Chinese economic growth data at the end of the week comes as the country's leaders prepare for the second term of Donald Trump amid fears of another trade war
Chinese economic growth data at the end of the week comes as the country's leaders prepare for the second term of Donald Trump amid fears of another trade war - Copyright AFP STR
Chinese economic growth data at the end of the week comes as the country's leaders prepare for the second term of Donald Trump amid fears of another trade war - Copyright AFP STR

The US Trade Representative said Thursday that its probe into China’s practices in the shipbuilding, maritime and logistics sectors found that Beijing’s “targeted dominance” warranted action.

The conclusion comes after the USTR launched an investigation last year, responding to a petition by five unions.

“Beijing’s targeted dominance of these sectors undermines fair, market-oriented competition, increases economic security risks, and is the greatest barrier to revitalization of US industries,” USTR Katherine Tai said in a statement.

Tai added that the findings, under Section 301 of the Trade Act, “set the stage for urgent action to invest in America and strengthen our supply chains.”

A Section 301 investigation was a key tool President-elect Donald Trump’s first administration used to justify tariff hikes on Chinese goods.

Beijing has previously criticized the US investigation as being “full of false accusations.”

But Tai said Thursday that the United States builds fewer than five ships each year — a sharp decline from in the 1970s — while China builds more than 1,700.

The USTR investigation found China’s efforts to dominate the sector “unreasonable” as it displaces foreign firms and creates dependencies on the world’s second biggest economy.

The USTR added that Beijing also has “extraordinary control over its economic actors and these sectors.”

But a decision on what actions to take would be considered in the next stage of the probe.

On Thursday, Alliance for American Manufacturing president Scott Paul applauded the pursuit of the investigation.

“Failing to take decisive action will leave our shipbuilding capabilities at the mercy of Beijing’s persistent predatory market distortions,” Paul said.

AFP
Written By

With 2,400 staff representing 100 different nationalities, AFP covers the world as a leading global news agency. AFP provides fast, comprehensive and verified coverage of the issues affecting our daily lives.

You may also like:

Tech & Science

Like many great ideas, YYC DataCon started as a conversation among friends.

Business

Today, technology leaders are business leaders.

Social Media

Digital titans including Facebook and TikTok formally pledged to ramp up the fight against disinformation in the EU.