WASHINGTON – The Office of the United States Trade Representative will hold a public hearing on March 24 and March 26, 2025, regarding proposed actions in the Section 301 investigation on China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance.
The hearing will take place in the main hearing room of the U.S. International Trade Commission, at 500 E Street SW, Washington, DC, starting at 10:00 am ET.
Please consult the USTR website for the hearing schedule.
The Federal Register Notice regarding the proposed actions and hearing can be viewed here.
Public submissions for the hearing can be viewed here.
NOTE: The hearing is on the record but no external cameras or video recording will be allowed in the hearing room. The hearing will not be livestreamed. A full transcript of the hearing will be posted on ustr.gov after the hearing. Please contact media@ustr.eop.gov with questions or for more information on media arrangements.
Background
Section 301(b) of the Trade Act of 1974, as amended (Trade Act), is designed to address unfair foreign practices affecting U.S. commerce. 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. 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.
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 of 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 the PRC, 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 further found that PRC 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.
In order to create leverage to obtain the elimination of China’s targeting of these sectors for dominance, USTR proposed to take action against certain services of China and also action on a nondiscriminatory basis on certain services, including those supplied using Chinese goods. On February 21, 2025, USTR invited public comment and scheduled a public hearing for March 24, 2025. The docket for receiving public comments will remain open until March 24, 2025. Post-hearing rebuttal comments must be submitted by seven calendar days after the last day of the public hearing.
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.
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