Washington, DC – The Office of the United States Trade Representative (USTR) is inviting comments from the public on proposed Section 301 actions aimed to obtain the elimination of China’s acts, policies, and practices targeting the maritime, logistics, and shipbuilding sectors for dominance. In this Section 301 investigation, USTR has found China’s acts, policies, and practices to be unreasonable and to burden or restrict US commerce.
To obtain the elimination of China’s acts, policies, and practices, and in light of China’s market power over global supply, pricing, and access in the maritime, logistics, and shipbuilding sectors, USTR proposes to impose certain fees and restrictions on international maritime transport services related to Chinese ship operators and Chinese-built ships, as well as to promote the transport of U.S. goods on U.S. vessels. USTR invites comments from any interested person on the proposed actions.
USTR will hold a public hearing about the proposed actions on March 24, 2025, in the main hearing room at the International Trade Commission.
The deadline to submit a request to appear at the hearing is March 10, 2025.
The deadline for submission of comments is March 24, 2025.
To view the Federal Register Notice, click here.
Comments in response to this notice can be submitted or accessed here.
Background
Section 301 of the Trade Act of 1974, as amended (Trade Act), is designed to address unfair foreign practices affecting U.S. commerce. The Section 301 provisions of the Trade Act provide a domestic procedure through which interested persons may petition the U.S. Trade Representative to investigate a foreign government act, policy, or practice and take appropriate action. Section 301(b) may be used to respond to unreasonable or discriminatory foreign government acts, policies, and practices that burden or restrict U.S. commerce.
On March 12, 2024, five national labor unions filed a petition requesting an investigation into the acts, policies, and practices of China targeting the maritime, logistics, and shipbuilding sectors for dominance. The five petitioner unions are:
- 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”).
The petition was filed pursuant to Section 302(a)(1) of the Trade Act, requesting action pursuant to Section 301(b).
Pursuant to Section 302(a)(2) of the Trade Act, the U.S. Trade Representative reviewed the allegations in the petition and determined to initiate an investigation regarding the issues raised in the petition. On April 17, 2024, the U.S. Trade Representative requested consultations with the government of China.
In light of the information obtained during the investigation and taking into account public comments, as well as the advice of the interagency Section 301 Committee and advisory committees, the U.S. Trade Representative determined that China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is actionable under Sections 301(b) and 304(a) of the Trade Act. The U.S. Trade Representative found that China’s targeting for dominance is unreasonable and burdens or restricts U.S. commerce.
Specifically, USTR found China’s targeting for dominance unreasonable because it displaces foreign firms, deprives market-oriented businesses and their workers of commercial opportunities, and lessens competition and creates dependencies on China, increasing risk and reducing supply chain resilience. China’s targeting for dominance is also unreasonable because of Beijing’s extraordinary control over its economic actors and these sectors.
USTR found that China’s targeting for dominance burdens or restricts U.S. commerce by undercutting business opportunities for and investments in the U.S. maritime, logistics, and shipbuilding sectors; restricting competition and choice; creating economic security risks from dependence and vulnerabilities in sectors critical to the functioning of the U.S. economy; and undermining supply chain resilience.
A copy of the petition and other public documents associated with this investigation are available here. USTR’s public report on the investigation is available here, and the U.S. Trade Representative’s determination is available here.
