Investigation of China’s maritime, logistics, and shipbuilding sector dominance
Office of the United States Trade Representative (USTR) seeks written comments on potential trade action regarding the Section 301 investigation of China’s maritime, logistics, and shipbuilding sector dominance. A public hearing and rebuttal comments will be accepted.
To view the full publication in the Federal Register, please click on the following link:
Key Dates
- February 21, 2025: Comments open.
- March 10, 2025: Submit hearing appearance requests with testimony summary.
- March 24, 2025: Submit written comments. Public hearing at U.S. International Trade Commission, DC, 10 a.m.
- Seven days post-hearing: Submit rebuttal comments
I. Background
On March 12, 2024, petitioners filed a Section 301 petition regarding China’s maritime sector dominance practices. The USTR initiated an investigation on April 17, 2024, after consulting advisory committees. China declined consultation requests. The notice sought comments on:
- China’s maritime sector targeting practices
- Whether these practices are unreasonable
- China’s global maritime dominance efforts
- Related Chinese practices
- Impact on U.S. commerce
Based on the investigation findings, public report, comments, and advisory committee recommendations, the USTR concluded that China’s maritime sector dominance efforts unreasonably burden U.S. commerce, warranting action under Sections 301(b) and 304(a) of the Trade Act.
II. Proposed Action
Under Section 301(b), upon determining actionable practices, the USTR must take appropriate measures authorized by Section 301(c), subject to Presidential direction, to eliminate such practices. Section 301(c) empowers the Trade Representative to impose duties, import restrictions, or service fees on the investigated country. Actions may target specific sectors or apply broadly.
The Trade Representative proposes the following potential actions, which would be additional to existing restrictions:
Fees on Services
Service Fee on Chinese Maritime Transport Operators:
Charging vessel operators from China either:
- Up to $1,000,000 per vessel entry to U.S. ports, or
- Up to $1,000 per net ton of vessel capacity per U.S. port entry
Service Fee on Maritime Transport Operators with Fleets Comprised of Chinese-Built Vessels:
Upon entry of a Chinese-built vessel to a U.S. port, operators will be charged a fee based on their fleet composition:
- Maximum fee per vessel entry: $1,500,000
- Fleet-based charges:
- Fleets with โฅ50% Chinese-built vessels: up to $1,000,000 per entry
- Fleets with 25-50% Chinese-built vessels: up to $750,000 per entry
- Fleets with <25% Chinese-built vessels: up to $500,000 per entry
- Additional fee: Up to $1,000,000 per entry for fleets with โฅ25% Chinese-built vessels
Service Fee on Maritime Transport Operators with Prospective Orders for Chinese Vessels:
Additional charges based on Chinese shipyard orders:
- Orders โฅ50% from Chinese shipyards (24-month delivery): up to $1,000,000 per entry
- Orders 25-50% from Chinese shipyards (24-month delivery): up to $750,000 per entry
- Orders <25% from Chinese shipyards (24-month delivery): up to $500,000 per entry
- Additional fee: Up to $1,000,000 per entry if โฅ25% of ordered vessels are from Chinese shipyards (24-month delivery window)
Service Fee Remission for Maritime Transport via U.S.-built Vessels:
Operators may receive annual refunds up to $1,000,000 per U.S. port entry when using U.S.-built vessels for international maritime transport.
Restrictions on Services To Promote the Transport of U.S. Goods on U.S. Vessels
U.S. goods transport by sea must follow this timeline:
- From action date: Minimum 1% of annual U.S. exports by vessel must use U.S.-flagged vessels with U.S. operators.
- After 2 years: Minimum 3% of annual U.S. exports by vessel must use U.S.-flagged vessels with U.S. operators.
- After 3 years: Minimum 5% of annual U.S. exports by vessel must use U.S.-flagged vessels with U.S. operators, including 3% on U.S.-built vessels.
- After 7 years: Minimum 15% of annual U.S. exports must use U.S.-flagged vessels with U.S. operators, including 5% on U.S.-built vessels.
Additional requirement: U.S. goods should use U.S.-flagged, U.S.-built vessels. Non-U.S.-built vessels may be approved if operators commit to transporting 20% of annual cargo on U.S.-flagged, U.S.-built ships.
Other Actions
Measures to mitigate risks from China’s LOGINK platform, including investigating anticompetitive practices by Chinese shipping companies, limiting LOGINK’s access to U.S. shipping data, and maintaining bans on LOGINK software use at U.S. ports.
The USTR may pursue negotiations with allies to counter China’s practices and reduce maritime sector dependencies.
III. Request for Public Comments
Per Section 304(b) of the Trade Act, USTR seeks public input on proposed actions against China’s discriminatory practices affecting U.S. commerce. Comments should address:
- Impact of China’s maritime sector dominance on U.S. commerce
- Scope and level of responsive trade actions
- Appropriateness of proposed service fees and restrictions, including types, levels, and fee structures
Comments should evaluate whether proposed actions would effectively address China’s practices.
Submit written comments by March 24, 2025. Post-hearing rebuttals are due seven days after the public hearing.
IV. Hearing Participation
The Section 301 Committee will hold a public hearing at the U.S. International Trade Commission (500 E Street SW, Washington, DC) on March 24, 2025, at 10 a.m. Submit appearance requests by March 10, 2025, including testimony summaries. Presentations are limited to five minutes to allow for Committee questions.
To participate in the hearing, submit a request through docket USTR-2025-0003 at https://comments.ustr.gov/s/. Include a testimony summary and optional pre-hearing submission. Remarks are limited to 5 minutes plus Q&A. All submissions must be in English and received by March 10, 2025.
V. Procedure for Written Submissions
Submit written comments via docket USTR-2025-0002 at https://comments.ustr.gov/s/.
To submit written comments, use the docket on the portal entitled `Request for Comments Concerning Proposed Action Pursuant to the Section 301 Investigation of China’s Targeting of the Maritime, Logistics, and Shipbuilding Sectors for Dominance.’
Third party organizations must identify their legal name and primary contact. Optional information fields may affect consideration if insufficient.
Fields with a gray Business Confidential Information (BCI) notation are for BCI information which will not be made publicly available. Fields with a green (Public) notation will be viewable by the public.
USTR will post attachments uploaded to the docket for public inspection, except for properly designated BCI. You can view submissions on USTR’s electronic portal at https://comments.ustr.gov/โs/โ by entering docket numbers USTR-2025-0002 and USTR-2025-0003 in the search field on the home page.
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