Quick access to main page (top) Direct access to main contents Quick access to main page (bottom)

U.S. Takes on China: Investigation into Unfair Shipbuilding Trade Practices Begins

theguru Views  

The United States government is expected to launch an investigation into the unfair practices of the Chinese shipbuilding industry following a petition from the United Steelworkers Union (USW). Analysts anticipate that this could potentially benefit the Korean shipbuilding industry.

According to a report by the Korea Trade-Investment Promotion Agency (KOTRA) on the 7th, Sanction to Chinese Shipbuilding in the U.S. and the Impact of Section 301, the United Steelworkers Union formally requested the U.S. Trade Representative (USTR) to investigate China’s purportedly unjust and discriminatory practices in the maritime, shipbuilding, and logistics domains on the 12th of last month.

The union has claimed that over the past two decades, the People’s Republic of China (PRC) enacted a comprehensive strategy to dominate global transportation and logistics networks, including employing various non-market policies. It alleges that China has heavily invested in commercial shipbuilding while forcing U.S. steel manufacturers to provide raw materials at low prices.

In response, the union petitioned to investigate China’s unfair trade practices under Section 301 of the U.S. Trade Act. The U.S. Trade Representative must review the petition and decide whether to initiate an investigation within 45 days.

The investigation petitioned by the union is based on Section 301 of the U.S. Trade Act, which permits broad trade retaliatory measures under the president’s jurisdiction if it is determined that a trading partner’s unfair or discriminatory trade practices or specific imported goods disrupt trade within the United States.

As the United Steelworkers Union leads the movement to sanction Chinese shipbuilding, various analyses are emerging regarding the potential impact on the Korean shipbuilding industry. South Korea, the second-largest producer of commercial vessels globally after China, is expected to benefit from the U.S.’s efforts to counter China.

In February, U.S. Navy Secretary Carlos Del Toro visited Korean shipbuilding companies in Busan, Ulsan, and Geoje to explore cooperation in shipbuilding and defense industries necessary for building a robust naval force. One rationale behind his visit was to consider diverting some demand to allied nations as the demand for ship maintenance and repairs in the U.S. has reached saturation.

However, some analysts caution that the immediate advantages for the Korean shipbuilding industry might be constrained, considering factors such as the Jones Act, which restricts U.S. ship procurement demand, and the fact that over half of the world’s ships are built in China.

theguru
content@viewusglobal.com

Comments0

300

Comments0

[WORLD] Latest Stories

  • Porsche Taycan GTS Breaks Guinness Record with 10.9-Mile Ice Drift
  • Africa's MPOX Variant Clade 1b Reaches France: Health Officials Take Action
  • LA Wildfires’ Economic Toll Hits $50 Billion, Doubling Early Estimates
  • Real Reason Trump Wants Greenland and the Panama Canal: Geopolitical Dominance
  • Biden Targets China, Russia with New Semiconductor Export Limits
  • Wildfire Chaos in California: 150,000 Evacuated as Flames Spread

You May Also Like

  • 1
    Breakfast vs. Dinner: Which Meal Should You Load Up On for Better Health?

    LIFESTYLE 

  • 2
    Eat More Greens—But Skip the Fake Stuff, Scientists Warn

    LIFESTYLE 

  • 3
    Veggies vs. IBD: New Research Says the Right Diet Might Be a Game-Changer

    LIFESTYLE 

  • 4
    Eli Lilly Moves First in India, Beats Novo in Obesity Drug Showdown

    LIFESTYLE 

  • 5
    Trump’s Soda Button and 12-Can Habit: A Recipe for Trouble?

    LIFESTYLE 

Popular Now

  • 1
    New FDA-Approved Pill Targets Constant Hunger in Children with PWS

    LIFESTYLE&nbsp

  • 2
    Too Much Exercise Might Not Help You Live Longer, Says New Study

    LIFESTYLE&nbsp

  • 3
    Novo Nordisk Just Bought the Next Big Thing in Weight Loss

    LIFESTYLE&nbsp

  • 4
    Strawberries + Nuts, Salmon & More: The Best Pairings for Your Wellness

    LIFESTYLE&nbsp

  • 5
    Truth About Narcolepsy: Symptoms, Causes, and How to Manage It

    LIFESTYLE&nbsp

Must-Reads

  • 1
    Breakfast vs. Dinner: Which Meal Should You Load Up On for Better Health?

    LIFESTYLE 

  • 2
    Eat More Greens—But Skip the Fake Stuff, Scientists Warn

    LIFESTYLE 

  • 3
    Veggies vs. IBD: New Research Says the Right Diet Might Be a Game-Changer

    LIFESTYLE 

  • 4
    Eli Lilly Moves First in India, Beats Novo in Obesity Drug Showdown

    LIFESTYLE 

  • 5
    Trump’s Soda Button and 12-Can Habit: A Recipe for Trouble?

    LIFESTYLE 

Popular Now

  • 1
    New FDA-Approved Pill Targets Constant Hunger in Children with PWS

    LIFESTYLE 

  • 2
    Too Much Exercise Might Not Help You Live Longer, Says New Study

    LIFESTYLE 

  • 3
    Novo Nordisk Just Bought the Next Big Thing in Weight Loss

    LIFESTYLE 

  • 4
    Strawberries + Nuts, Salmon & More: The Best Pairings for Your Wellness

    LIFESTYLE 

  • 5
    Truth About Narcolepsy: Symptoms, Causes, and How to Manage It

    LIFESTYLE