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Biden Administration Accuses China of Unfair Trade Practices in Maritime Sector
The Biden administration has concluded that China engages in unfair practices to establish dominance in global maritime, logistics, and shipbuilding industries. This assertion is based on findings from a trade investigation that lasted several months, as reported by sources familiar with the matter.
The inquiry, which began in April 2024, was initiated by U.S. Trade Representative Katherine Tai following requests from the United Steelworkers and four other American unions. Conducted under Section 301 of the Trade Act of 1974, the investigation empowers the U.S. to impose penalties against countries conducting actions viewed as “unjustifiable” or “unreasonable,” which negatively affect U.S. commerce.
Investigators found evidence that China had deliberately targeted the shipbuilding and maritime sector for strategic advantage. Reports indicate that the Chinese government utilized a range of tactics, such as providing financial support to domestic firms, erecting barriers against foreign competition, enforcing forced technology transfers, engaging in intellectual property theft, and implementing procurement policies that favor its local industries.
Moreover, there are allegations that Beijing has significantly suppressed labor costs within its maritime and shipbuilding sectors, further disadvantaging international competitors. Insights from the investigation suggest that these practices are part of a broader strategy to bolster China’s position in the global market.
As the U.S. assesses its trade relations with China, this investigation highlights ongoing tensions over economic practices and competition in critical industries.
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