U.S. takes aim at China shipbuilding, an industry it lost decades ago

Union-spurred probe into Chinese shipyards threatens retaliatory port fees

20240507 Caixin 1

A shipyard in Yichang, Hubei province, China. Amid a push to curb China's manufacturing dominance, the U.S. is urging key allies Japan and South Korea to invest in America's beleaguered shipbuilding industry.

LI RONGQIAN, DU ZHIHANG and DENISE JIA, Caixin

The U.S. last month began an investigation of China's dominant shipbuilding industry, a move that heaps more pressure on China as the countries' trade battle extends beyond technology and into the manufacturing sector.

Following a petition from five labor unions, Katherine Tai, the U.S. trade representative (USTR), announced on April 17 the so-called 301 probe into China's practices in maritime equipment, logistics and shipbuilding. A public hearing is set for May 29. This marks the first industry-specific investigation by the Biden administration under Section 301 of the U.S. Trade Act of 1974 -- a tool that allows the government to enforce trade agreements and impose sanctions on nations violating norms of international commerce.

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