U.S. Labor Unions Petition U.S. Trade Representative Probe On China’s Shipbuilding Sector

According to the USTR office, five U.S. labour unions submitted a petition with Katherine Tai, the U.S. Trade Representative’s office, on Tuesday, seeking an investigation into China’s alleged discriminatory rules and practices concerning the maritime logistics and shipbuilding sectors.

This petition had been filed under the Trade Act’s (1974) Section 301, a statute to combat trade partners’ unlawful practices. Trade practices are just one component of the strains in U.S.-China ties in recent years. Other contentious matters include spying allegations, Taiwan, human rights, and the start of the COVID-19 pandemic.

The PRC (China) is building dependencies and vulnerabilities in sectors like steel, batteries, aluminium, solar, and many critical minerals, harming U.S. workers and businesses and resulting in serious risks for supply chains, the USTR office mentioned in a statement, adding that it is going to review the petition.

The Chinese drive to dominate global shipbuilding, logistics, and maritime sectors is built on some non-market policies that are more aggressive and interventionist than those of any other nation, the unions stated in the petition. The United Steelworkers was one of five petitioner unions.

The petition mentioned above was submitted on Tuesday and was initially covered by the Financial Times. It urged the Biden administration to levy port fees on China-built vessels and, with it, create a fund to try to revitalize U.S. shipbuilding.

The petition further raised concerns regarding China’s software platform Logink, which offers worldwide supply chain logistics data. The petition also alleged that China’s government-backed platform had raised severe national security concerns.

In 2018 and 2019, the government of former U.S. President Donald Trump placed tariffs on thousands of Chinese imports worth approximately $370 billion. Biden retained tariffs and imposed new restrictions, citing key security concerns. The USTR office stated that it would investigate the unions’ complaints and decide whether to launch an investigation within 45 days.

Reference: Reuters

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