On February 21, 2025, the Office of the U.S. Trade Representative (USTR) announced its proposed actions in response to an earlier determination finding that China was targeting the maritime, logistics, and shipbuilding sectors for dominance. This determination followed an investigation under Section 301 of the Trade Act of 1974. This determination authorizes actions in response. USTR has proposed the following:
- Charging U.S. port service fees on Chinese maritime transport operators of up to $1 million per entrance or up to $1,000 per ton of the vessel’s capacity.
- Charging U.S. port services fees on maritime transport operators: (i) with fleets comprised of Chinese-built vessels, and (ii) with prospective orders for Chinese vessels. These fees would range from $500,000 to $1.5 million; and it appears that such service fees could be combined and cumulative.
- Allowing service fee remission for maritime transport via U.S.-built vessels of up to $1 million per entry into a U.S. port of a U.S.-built vessel engage in international maritime transport services.
- Restrictions on services to promote the transport of U.S. goods on U.S. vessels. These would include annual increasing requirements that a percentage of exports of U.S. products be on U.S.-flagged vessels by U.S. operators: starting with requiring 1% in year one and up to 15% of U.S. goods restricted to export on U.S.- flagged vessels by U.S. operators, of which 5% must also be U.S.-built vessels by year seven.
- Potential actions to restrict use of the Chinese-promoted National Transportation and Logistics Public Information Platform (LOGINK).
USTR has also indicated that it may consider entering into negotiations with allies and partners in order to counteract China’s acts, policies, and practices and to reduce dependencies on China in the maritime, logistics, and shipbuilding sectors.
In releasing the report and determination in January 2025, the USTR determined that China’s targeting of the maritime, logistics, and shipbuilding sectors for dominance is actionable under Sections 301 and 304 of the Trade Act. The determination found that China’s targeting for dominance is unreasonable and burdens or restricts U.S. commerce “because it displaces foreign firms, deprives market-oriented businesses and their workers of commercial opportunities, and lessens competition and creates dependencies on China, increasing risk and reducing supply chain resilience. These factors undercut business opportunities for and investments in the U.S. maritime, logistics, and shipbuilding sectors; restrict competition and choice; create economic security risks from dependence and vulnerabilities in sectors critical to the functioning of the U.S. economy; and undermine supply chain resilience. For more background information on this investigation filed in March 2024 by five national labor unions, see Thompson Hine’s Bulletin of April 23, 2024, and past Updates of January 17, 2025, April 17, 2024 and March 13, 2024.
Request for Public Comments
USTR is requesting public comments from interested parties regarding these proposed actions. Any comments must be submitted no later than March 24, 2025 via USTR’s electronic portal: https://comments.ustr.gov/s/. The docket number for written comments and rebuttal comments is USTR–2025–0002. The docket number for requests to appear is USTR–2025–0003.
USTR will also hold a public hearing on the proposed action in this investigation in the main hearing room of the U.S. International Trade Commission, 500 E Street S.W., Washington DC 20436, on March 24, 2025. Any request to appear at this hearing must be submitted no later than March 10, 2025, via the same USTR portal under docket number USTR–2025–0003. Requests to appear must include a summary of testimony, and may be accompanied by a pre-hearing submission. Remarks at the hearing are limited to five minutes.