Just days before Donald Trump assumes the presidency of the United States on 20 January 2024, Washington has opened a case against China’s shipbuilding sector. In a report released on 17 January, the United States Trade Representative (USTR) asserts that China employs policies that "unfairly depress costs or provide advantages" to consolidate its leading position in strategic sectors such as shipbuilding. According to the agency, this situation not only disadvantages foreign companies but also undermines commercial opportunities for market-driven businesses and workers, creating an economic dependency that jeopardises the resilience of global supply chains. This outcome could pave the way for new tariffs by the US administration.
The USTR highlighted that China’s shipbuilding industry benefits from low labour standards and the use of forced or compulsory labour. Furthermore, an excess of raw material production, such as steel, allows Chinese companies to maintain a competitive edge across the entire supply chain. In 2023, more than half of the world’s merchant ships were produced in Chinese shipyards, according to statistics from the United Nations Conference on Trade and Development (UNCTAD). To sustain this dominance, Chinese policies have reportedly encouraged the premature decommissioning of obsolete ships, artificially boosting domestic demand and strengthening the position of local shipyards.
The USTR investigation, initiated last March following a petition from a group of trade unions, is based on Section 301 of the Trade Act—the same mechanism used during Trump’s first term to impose tariffs on hundreds of billions of dollars’ worth of Chinese imports over alleged intellectual property violations. Brian Bryant, president of the International Association of Machinists and Aerospace Workers, welcomed the report, describing Chinese practices as "a devastating blow to the US shipbuilding and maritime industry." Bryant urged the administration to take "swift and decisive action" to restore a position of strength for the American sector.
