On January 16, 2025, the Office of the U.S. Trade Representative (USTR) released its report and findings in the Section 301 investigation of China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance, concluding that China’s targeted dominance in these sectors is unreasonable and burdens or restricts U.S. commerce, and is thus “actionable” under Section 301 of the Trade Act of 1974. This investigation delved into the acts, policies, and practices of China in the maritime, logistics, and shipbuilding sector. Section 301 allows the United States to respond to unreasonable or discriminatory foreign government practices that burden or restrict U.S. commerce. While finding China’s behavior is actionable, the USTR deferred what further actions, if any, to take to subsequent proceedings.
In releasing the report, Ambassador Katherine Tai said: “Beijing’s targeted dominance of these sectors undermines fair, market-oriented competition, increases economic security risks, and is the greatest barrier to revitalization of U.S. industries, as well as the communities that rely on them. These findings under Section 301 set the stage for urgent action to invest in America and strengthen our supply chains.” A forthcoming Federal Register Notice of Determination notes that the investigation determined:
- China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is unreasonable because: it displaces foreign firms, deprives market-oriented businesses and their workers of commercial opportunities, and lessens competition; and it creates dependencies on China, increasing risk and reducing supply chain resilience. China’s targeting for dominance also is unreasonable because of China’s extraordinary control over its economic actors and these sectors.
- China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance burdens or restricts U.S. commerce by: undercutting business opportunities for and investments in the U.S. maritime, logistics, and shipbuilding sectors; restricting competition and choice; creating economic security risks from dependence and vulnerabilities in sectors critical to the functioning of the U.S. economy; and undermining supply chain resilience.
The determination is accompanied by a comprehensive report, which is available here.
For more background information on this investigation filed in March 2024 by five national labor unions, see Thompson Hine’s Bulletin of April 23, 2014, and past Updates of April 17, 2024 and March 13, 2024.