What’s new: China’s commerce ministry has opposed Washington’s plan to launch a formal trade investigation into its maritime, logistics and shipbuilding sector, calling the move “a mistake.”
The petition against Chinese businesses was “filled with unfounded accusations” and misinterpreted normal trade and investment practices as harming U.S. national security and corporate interests, a Chinese Commerce Ministry spokesperson said on Wednesday. “It lacks factual basis and goes against economic common sense to blame China for America’s own industrial problems.”
“China will closely follow the investigation’s progress and will take all necessary measures to resolutely defend its rights and interests,” the ministry added.
Background: The Biden administration confirmed Wednesday the launch of an investigation into China’s shipbuilding practices.
The decision followed a petition filed in March by a group of U.S. labor unions with the office of the U.S. Trade Representative (USTR) requesting a review on China’s subsidies for shipbuilders.
Citing Section 301 of the Trade Act of 1974, the petition asked the Biden administration to impose a port fee on Chinese-built ships that dock at U.S. ports and use the money to create a shipbuilding revitalization fund to help the domestic industry compete. The USTR had 45 days to decide if an investigation should be initiated.
Contact reporter Han Wei (weihan@caixin.com)
