China’s shipbuilders yesterday blasted as “short-sighted” US port fees announced by President Donald Trump’s administration on China-linked ships, a measure aimed at the nation’s shipbuilding industry.
Trump signed an order on Wednesday aimed at reviving US shipbuilding and reducing China’s grip on the global shipping industry. His government the next day watered the measures down by shielding domestic exporters and vessel owners serving the Great Lakes, the Caribbean and US territories.
The spat over ocean shipping, which conveys 80 per cent of global trade, is the latest conflict in an intensifying trade war between China and the US that has pushed levies on each other’s imports beyond 100pc.
The China Association of the National Shipbuilding Industry expressed “extreme indignation and resolute opposition” to the US measures, joining protests from the government and country’s shipowners.
“The decline of the US shipbuilding industry is the result of its protectionism and has nothing to do with China,” the shipbuilders said in a statement.
It warned the US restrictions would disrupt the global maritime system, lead to soaring shipping costs, further push up US inflation and harm the interest of the US people.
“We call on the international maritime industry to jointly resist this short-sighted US behaviour, and jointly maintain a fair market environment,” the industry body said, adding it expects Chinese authorities to take strong countermeasures.
The government protested against the “discriminatory” steps on Friday, urging Washington to “correct wrongdoings.”
The Commerce Ministry vowed in a statement to “resolutely take necessary measures to safeguard our own interests”, saying the fees “fully reveal the essence of its unilateralist and protectionist policies, and are typical, non-market practices”.
The Office of the US Trade Representative (USTR) significantly watered down original plans from February, under which vessels built in China would be charged $3.5m each time they docked at a US port. The US and China are locked in a trade war.
Those proposals prompted a backlash from US domestic industries, which warned the port charges would increase prices for American consumers, and sent a wave of concern through the global shipping industry.
The USTR said it would start charging port fees in 180 days, and they would rise incrementally over the coming years.
Under the new rules, Chinese-linked ships will be charged fees linked to the weight of their cargo or the number of containers on board, rather than according to how many US ports they call at.
The fees will be assessed up to five times a year, and can be waived if the owner places an order for a ship built in the US.
Chinese-built ships make up most of the fleets of the world’s 10 largest shipping carriers, while other east Asian countries including South Korea and Japan also dominate global shipbuilding.
The US shipbuilding industry, which was dominant after the Second World War, has declined over the years and now accounts for less than 1pc of global output.
Under the USTR’s plans, there will be separate fees charged on Chinese-operated and Chinese-built ships, which will gradually increase in subsequent years.
The fees for Chinese-built ships will begin at $18 per net tonne or $120 per container, which could mean that a ship loaded with 15,000 containers would be charged $1.8m.
All car carrier vessels not built in the US will also be hit with fees beginning in 180 days’ time. The US will also introduce new fees for liquefied natural gas (LNG) carriers, although these will not take effect for three years.
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