USTR to Launch 301 Investigation of Chinese Maritime Sector

The US Trade Representative announced Wednesday that after review of a petition filed by five national labor unions, USTR is initiating an investigation of acts, policies, and practices of  China  targeting the maritime, logistics, and shipbuilding sectors for dominance.

“The petition presents serious and concerning allegations of the PRC’s longstanding efforts to dominate the maritime, logistics, and shipbuilding sectors, cataloguing the PRC’s use of unfair, non-market policies and practices to achieve those goals. The allegations reflect what we have already seen across other sectors, where the PRC utilizes a wide range of non-market policies and practices to undermine fair competition and dominate the market, both in China and globally,” said Ambassador Katherine Tai. “I pledge to undertake a full and thorough investigation into the unions’ concerns.”

Rep. Joe Courteny (D-CT) welcomed the move: “I applaud President Biden and USTR Katherine Tai for initiating an investigation into China’s unfair shipbuilding practices…As the Co-Chair of Shipbuilding Caucus and the Ranking Member on the Seapower Subcommittee, I’ve witnessed how China’s tactics have dramatically expanded global dependency on their shipbuilding industry at the expense of U.S. workers, supply chains, and national security. Without intervention, China’s policies will continue to choke out competitors and erode the United States’ ongoing efforts to expand its industrial base and manufacturing capacity. I look forward to continuing dialogue with the Biden Administration and discuss policy recommendations to ensure that American workers and industry are resilient to China’s anti-competitive practices.”

As explained in a formal notice, USTR is seeking public comments and will hold a public hearing in connection with this investigation.

Background

Section 301 of the Trade Act of 1974, as amended, (Trade Act) is designed to address unfair foreign practices affecting U.S. commerce. Section 301 may be used to respond to unjustifiable, unreasonable, or discriminatory foreign government practices that burden or restrict U.S. commerce. The Section 301 provisions of the Trade Act provide a domestic procedure through which interested persons may petition the U.S. Trade Representative to investigate a foreign government act, policy, or practice and take appropriate action.
 
On March 12, 2024, five national labor unions filed a petition requesting an investigation into the acts, policies, and practices of the PRC targeting the maritime, logistics, and shipbuilding sectors for dominance. The five petitioner unions are:

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

The petition was filed pursuant to Section 302(a)(1) of the Trade Act (19 U.S.C. § 2412(a)(1)), requesting action pursuant to Section 301(b) (19 U.S.C. § 2411(b)). A Section 301(b) investigation examines whether the acts, policies, or practices are unreasonable or discriminatory and burden or restrict U.S. commerce. After consideration of the petition and on the advice of the Section 301 Committee, the United States Trade Representative has initiated an investigation. The U.S. Trade Representative must seek consultations with the foreign government whose acts, policies, or practices are under investigation. USTR has requested consultations with the People’s Republic of China in connection with the investigation.

A copy of the petition is available here.

A docket for comments regarding the investigation will be available here.

A docket for requests to appear at the public hearing to be held in connection with this investigation will be available here.

Initiation of Section 301 Investigation: