Urges Swift Action to Restore American Shipbuilding Industry
WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) today expressed strong support for the actions recently proposed by the U.S. Trade Representative (USTR) aimed at countering China’s aggressive targeting of the maritime, logistics, and shipbuilding sectors. In a comment letter submitted to USTR in response to the Section 301 investigation, CPA highlighted China’s extensive use of state-driven subsidies and unfair trade practices, urging immediate implementation of targeted measures to support the revitalization of the U.S. shipbuilding industry.
CPA’s submission emphasizes that China’s strategic policies have severely undermined fair competition, noting:
“Chinese shipyards received approximately $91 billion from the government [from 2006–13], including $23 billion in direct production subsidies that reduced shipbuilding costs by 13–20%. Additionally, Chinese shipbuilders have benefitted from preferential financing through state banks, including low-interest loans, loan guarantees, and attractive export buyer’s credits that incentivize foreign orders … These efforts artificially elevate Chinese enterprises by significantly reducing operational costs and boosting their competitiveness at the expense of foreign businesses.”
The letter also stresses the devastating consequences of China’s state-backed practices on the U.S. commercial shipbuilding sector:
“China's global market share surged dramatically, from 14% in 2003 to 51% in 2023, while such shares of U.S. commercial shipbuilding declined to less than 1% during this time. Chinese shipyards now produce more ship tonnage than the rest of the world combined, creating an uneven playing field that significantly undermines U.S. shipbuilding capabilities.”
To counter these aggressive practices, CPA strongly endorsed USTR’s proposals to impose tonnage-based fees on Chinese-built or flagged vessels, tariffs on PRC-manufactured port cargo-handling equipment, and fees on maritime services involving Chinese vessels. CPA’s letter emphasized the strategic importance of these actions:
“CPA strongly supports the USTR’s proposed implementation of targeted ‘fees on services’... These service-based fees—ranging from per-vessel charges on Chinese maritime operators to surcharges on fleets using PRC-built vessels—are a strategic and proportionate response to China’s unfair practices. Importantly, these fees both penalize PRC operators and provide financial incentives for operators to diversify their fleets away from Chinese-built ships. The proposed fee remission mechanism for operators utilizing U.S.-built vessels is a welcome provision that will encourage long-term investment in American shipbuilding. CPA views this as an innovative approach to leveling the playing field, redirecting global vessel orders, and ultimately restoring a sustainable domestic shipbuilding base.”
CPA also backed efforts to enforce collection of the Harbor Maintenance Tax, noting:
“CPA fully supports Homeland Security’s mandate to require all foreign-origin cargo to clear U.S. Customs at a U.S. port of entry before further inland transport. Further, the proposed 10% service fee on shipments entering the U.S. via Canadian or Mexican land borders ensures fair cost distribution while deterring tax avoidance strategies.”
Further highlighting national security concerns, CPA underscored the risks posed by China’s logistics platforms:
“The LOGINK platform, facilitated and promoted by the Chinese state, centralizes vast amounts of global logistics data, potentially enabling Chinese shipping companies to employ anti-competitive practices by leveraging this information asymmetrically. Such data control grants Chinese firms substantial competitive advantages, enabling them to engage in manipulative practices like predatory pricing or strategic withholding of crucial logistical information from competitors. Additionally, the expansion and widespread adoption of LOGINK pose significant cybersecurity and economic security threats.”
CPA concluded by advocating a multilateral approach, including diplomatic efforts to align trade policies with allies and a Maritime Security Trust Fund to support the domestic shipbuilding industry:
“CPA strongly endorses the establishment of a dedicated Maritime Security Trust Fund. Drawing revenue from tariffs, port fees, and taxation of PRC-related maritime activities, the fund will finance shipbuilding programs, domestic infrastructure improvements, and strategic vessel acquisitions.”Additionally, the expansion and widespread adoption of LOGINK pose significant cybersecurity and economic security threats.”
CPA urges the USTR and other relevant agencies to swiftly implement these essential measures, ensuring American shipbuilders, port operators, and logistics providers regain competitive footing and bolstering national security.
Read CPA’s full letter here.
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