Thursday, April 24, 2025

USTR to hold public hearing on proposed actions vs China’s targeting of maritime, logistics, and shipbuilding for dominance

The United States Trade Representative (USTR) will hold a public hearing on March 24 and March 26, 2025, to discuss proposed actions in the Section 301 investigation concerning China’s efforts to dominate the maritime, logistics, and shipbuilding sectors. The hearing will take place at the U.S. International Trade Commission’s main hearing room, located at 500 E Street SW, Washington, DC, starting at 10:00 AM ET.

Section 301(b) of the Trade Act of 1974, as amended, provides a mechanism to address unfair foreign practices that affect U.S. commerce. This provision allows the USTR to take action in response to foreign government acts, policies, and practices that are unreasonable or discriminatory, thereby burdening or restricting U.S. trade. Section 301 also offers a process through which interested parties can petition the USTR to investigate these practices and pursue appropriate remedies.

On March 12, 2024, five national labor unions filed a petition requesting an investigation into China’s policies and practices targeting the maritime, logistics, and shipbuilding sectors for global dominance. The petitioning unions are:

  • United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO CLC (“USW”);
  • International Association of Machinists and Aerospace Workers (“IAM”);
  • International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers and Helpers, AFL-CIO/CLC (“IBB”);
  • International Brotherhood of Electrical Workers (“IBEW”); and
  • Maritime Trades Department, AFL-CIO (“MTD”).

The petition was filed under Section 302(a)(1) of the Trade Act, seeking action under Section 301(b). In response, the USTR reviewed the allegations and decided to initiate an investigation into the practices outlined in the petition. Following this, on April 17, 2024, the USTR formally requested consultations with the government of China.

Based on the investigation’s findings, including public input and the advice of the Section 301 Committee and advisory bodies, the USTR determined that China’s actions to dominate the maritime, logistics, and shipbuilding sectors are actionable under Sections 301(b) and 304(a) of the Trade Act. The USTR concluded that China’s efforts to dominate these sectors are unreasonable, as they displace foreign competitors, deprive market-oriented businesses and workers of opportunities, reduce competition, and create dependencies on China, ultimately increasing risks and undermining supply chain resilience.

Furthermore, the USTR found that these actions burden or restrict U.S. commerce by undermining business opportunities in the U.S. maritime, logistics, and shipbuilding sectors, stifling competition, and creating vulnerabilities in critical industries that are essential to the U.S. economy. China’s aggressive control over these sectors exacerbates these risks.

To address these concerns and encourage China to cease its targeting of these sectors, the USTR has proposed actions against certain Chinese services and other non-discriminatory measures involving services provided using Chinese goods. On February 21, 2025, the USTR invited public comments and scheduled a public hearing for March 24, 2025. The docket for public comments will remain open until the start of the hearing. Additionally, post-hearing rebuttal comments are due within seven calendar days following the conclusion of the public hearings.

- Advertisement -spot_img
spot_img

LATEST

- Advertisement -spot_img