(Yicai) Jan. 17 -- China’s ministry of commerce and a number of industry associations have expressed firm opposition and strong dissatisfaction with the conclusion of a US investigation into China’s maritime, logistics and shipbuilding industries that claims that China’s dominance in these sectors is actionable under Section 301 of the US Trade Act, which is designed to address unfair foreign practices affecting US commerce.

The United States Trade Representative released the report of a Section 301 investigation yesterday which claimed that China's targeted dominance in the maritime, logistics and shipbuilding sectors is unreasonable and burdens or restricts US commerce.

The Section 301 investigation clearly reflects unilateralism and protectionism, a MOFCOM spokesperson said in a statement posted on its website today.

The growth of China's shipbuilding industry is not driven by so-called "non-market practices," but is underpinned by a robust industrial system, a well-trained workforce, and an open business environment, the spokesperson said. China will closely follow developments and resolutely defend its legitimate rights and interests.

"Beijing's targeted dominance of these sectors undermines fair, market-oriented competition, increases economic security risks, and is the greatest barrier to the revitalization of US industries, as well as the communities that rely on them. These findings under Section 301 set the stage for urgent action to invest in America and strengthen our supply chains," USTR Ambassador Katherine Tai said.

The China Association of the National Shipbuilding Industry said that the investigation, based on flawed premises, leads to erroneous conclusions filled with falsehoods and distortions, amounting to baseless accusations and malicious defamation of China's shipbuilding industry.

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products also staunchly opposed the report.

The decline of the US’ shipbuilding industry is unrelated to China, the MOFCOM spokesperson said. Long before China's rise in shipbuilding, the US had already lost significant global market share in this sector.

The US shipbuilding industry has been on the decline since the 1980s. In 1975, the country had the biggest shipbuilding capacity in the world. That year its shipbuilding industry had orders for over 70 vessels and employed 180,000 workers, according to USTR data.

But the number of shipyards had plummeted by over 70 percent by 2024 and the country had fallen to 19th in the global rankings and produced less than 1 percent of the world's commercial ships.

Between 1987 and 1993, only eight vessels bigger than 1,000 gross tons were sold, according to a report by the US Department of Homeland Security.

Editor: Kim Taylor