Biden administration concludes China uses unfair practices in global maritime sectors

Investing.com -- The administration of U.S. President Joe Biden has determined that China employs unfair policies and practices to gain dominance in the global maritime, logistics, and shipbuilding sectors, according to three Reuters sources privy to the findings of a trade investigation that lasted several months.

The inquiry, which was initiated in April 2024 by U.S. Trade Representative (USTR) Katherine Tai, came in response to requests from the United Steelworkers and four other U.S. unions. The probe was conducted under Section 301 of the Trade Act of 1974, a legislation that empowers the U.S. to impose penalties on foreign nations that partake in acts deemed "unjustifiable" or "unreasonable," or that impose burdens on U.S. commerce.

The investigators came to the conclusion that China specifically targeted the shipbuilding and maritime industry for dominance. The Asian country reportedly used financial support, barriers for foreign firms, forced technology transfer, intellectual property theft, and procurement policies to provide its shipbuilding and maritime industry with an advantage, one of the sources revealed.

In addition, Beijing has been accused of significantly and artificially suppressing labor costs in China's maritime, shipbuilding, and logistics sectors. This information was provided by one of the sources, who was not authorized to speak publicly, and was citing excerpts from the report.

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Source: Investing.com