The Biden administration has concluded that China employs unfair practices to dominate global shipbuilding, maritime, and logistics sectors, according to sources familiar with a recent trade investigation. The probe, launched in April 2024 by U.S. Trade Representative Katherine Tai under Section 301 of the Trade Act of 1974, found that China uses heavy subsidies, suppressed labor costs, forced technology transfers, and restrictive policies to outcompete rivals.
China’s share of the $150 billion global shipbuilding market skyrocketed from 5% in 2000 to over 50% in 2023, while U.S. shipbuilders now hold less than 1%. The report’s findings could lead to new tariffs or port fees on Chinese-built ships after a public review process.
This report, released just before President-elect Donald Trump’s inauguration, highlights bipartisan concerns about China’s industrial strategies. Trump has vowed to increase tariffs on Chinese imports and prioritize revitalizing U.S. shipbuilding. Experts, however, warn that rebuilding the industry could take decades and require billions of dollars in investment.
The U.S. once had over 300 shipyards in the 1980s but now has only 20. Demand for military and civilian ships remains strong, but the nation lacks sufficient capacity. Bipartisan legislation is being drafted to support the sector’s recovery.
“China’s targeting of shipbuilding and logistics is a major barrier to restoring U.S. competitiveness,” the report states. It emphasizes that tariffs alone won’t suffice, urging partnerships with allies and long-term investments to rebuild the industry.
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