China Denounces U.S. Shipbuilding Investigation as Politically Driven

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  • China strongly rejects a U.S. investigation accusing it of unfair dominance in the shipbuilding industry, labeling it politically driven.
  • The U.S. claims China’s shipbuilding practices harm global trade and threaten U.S. industrial revitalization efforts.
  • China attributes its shipbuilding success to innovation, labor advantages, and market openness, dismissing U.S. allegations as baseless.

China has dismissed the findings of a U.S. investigation into its shipbuilding industry, calling the allegations an attempt to hinder its development. The investigation, under Section 301 of the U.S. Trade Act, has sparked tensions, with both nations presenting sharply opposing views on the global shipbuilding market’s dynamics, reports SCMP.

China Rejects U.S. Claims of Unfair Shipbuilding Practices

China’s Ministry of Commerce criticized the U.S. investigation as politically motivated, claiming it undermines multilateral trade systems.

The U.S. alleged that China’s dominance in shipbuilding, logistics, and maritime sectors burdens U.S. commerce under Section 301.

U.S. Perspective: A Decline in Domestic Shipbuilding

U.S. Trade Representative Katherine Tai highlighted the sharp decline in U.S. shipbuilding from 70 ships annually in 1975 to less than five today.

Tai argued that China’s shipbuilding dominance poses a barrier to revitalizing U.S. industries, contrasting it with China’s output of over 1,700 ships annually.

China’s Defense: Innovation and Market Advantages

China countered the U.S. accusations, attributing its shipbuilding success to technological innovation, a robust industrial system, and labor efficiency.

It dismissed claims of market manipulation, asserting its industry operates openly and fairly on the global stage.

Industry Reactions: Disruptions to Global Shipping

The China Association of the National Shipbuilding Industry condemned the U.S. investigation, labeling its findings false and disruptive to global trade.

The association warned of potential harm to international shipping and the maritime industry’s green transformation.

Future Actions and Implications

Based on the investigation’s findings, the USTR indicated potential responsive actions, including additional port fees for Chinese-built ships.

In response, China vowed to monitor U.S. actions and take measures to defend its rights.

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Source: SCMP