Chinese authorities have strongly criticized the United States’ recent investigation into China’s shipbuilding industry, labeling it as a misguided move. In response to the probe initiated by the Office of the U.S. Trade Representative, China’s Ministry of Commerce issued a statement condemning the allegations of “unfair, non-market policies and practices” as baseless.
According to the Chinese ministry, while the U.S. accuses China of employing so-called ‘non-market practices,’ it overlooks its own extensive subsidies to domestic industries, which amount to hundreds of billions of dollars. China asserts that its industrial development is the result of technological innovation and fair competition within the market.
The initiation of the investigation under Section 301 of the Trade Act of 1974, which addresses unfair foreign government practices affecting U.S. commerce, has been met with strong opposition from Beijing. The Chinese ministry criticized the move as compounding a previous mistake and urged the U.S. to adhere to multilateral rules.
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The investigation follows a petition by five national labor unions urging the U.S. to examine China’s maritime, logistics, and shipbuilding sectors. U.S. Trade Representative Ambassador Katherine Tai has pledged a comprehensive investigation into the concerns raised by the unions, citing China’s alleged use of non-market policies to dominate various sectors.
President Joe Biden’s administration has also taken steps to protect American industries, including proposing a tripling of tariffs on Chinese steel and aluminum imports. The White House argues that Chinese subsidies create unfair competition by offering artificially low-priced alternatives, which undermine high-quality U.S. products.
As tensions between the two economic powerhouses continue to escalate, the outcome of the investigation and subsequent actions taken by both parties will likely have far-reaching implications for global trade relations.
