The United Steelworkers union (USW) will ask US President Joe Biden to open a trade investigation into alleged Chinese unfair economic practices in the shipbuilding and maritime logistics sectors.
In an article published in The Financial Times, USW and other unions are reported to be filing a petition with the US Trade Representative outlining alleged discriminatory practices that have helped China dominate global shipbuilding.
According to USW president David McCall, the US was once a leader in the commercial shipbuilding industry, but over the past two decades China has made huge investments in shipbuilding and engaged in predatory trade practices.
According to Clarksons Research, a maritime consultancy, in the last 20 years China has gone from producing roughly 12% of global commercial ships by tonnage to more than 50% in 2023.
The USW petition will claim that Chinese shipbuilders have benefited from protectionist government policies, including preferential financing ranging from state-run bank loans to tax breaks.
In order to revive its commercial shipbuilding industry, the USW is calling on government to help grow domestic supply chains, which will in turn create new jobs.
The petition will be made under Section 301 of the Trade Act of 1974. The administration will then have 45 days to decide whether to respond by opening an investigation. As the FT article states, experts claim that Biden would be unlikely to turn down the request for a 301 probe.
The US steel industry has become a political issue in the 2024 presidential election – especially after Nippon Steel’s $14.9bn takeover launch of US Steel last year, which is a deal that the USW also opposes.
While China is also likely to become an increasingly political issue as the US election draws near, any move to open an investigation will potentially create more tension in US-China relations.
