THE US Trade Representative's (USTR) office has proposed imposing a $1.5 million fee on Chinese-flagged vessels entering US ports, reports London's Port Technology International.

This move marks a significant escalation in the ongoing investigation into China's growing dominance in global maritime and logistics sectors.

A recent USTR report revealed that China's share of global shipbuilding tonnage surged from five per cent in 1999 to over 50 per cent in 2023.

This rapid increase has been attributed to substantial state subsidies and preferential policies favouring government enterprises, which have outcompeted private international shipbuilders.

Meanwhile, US shipyards have sharply declined, dropping ship production from 70 vessels in 1975 to just five today.

In response, the USTR has introduced several shipping restrictions and scheduled a public hearing on March 24 to discuss potential remedies.

The probe, conducted under Section 301 of the Trade Act of 1974, was initiated last April at the request of the United Steelworkers and four other unions.

It aims to revitalize the US shipbuilding industry, which has declined since the 1970s when Japan and South Korea led the sector.

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