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Experts warn of global trade fallout as U.S. proposes port fees on Chinese-linked ships

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Experts warn of global trade fallout as U.S. proposes port fees on Chinese-linked ships

2025-03-25 15:24 Last Updated At:03-26 00:47

Proposed U.S. fees targeting Chinese-made ships are raising concerns among trade and logistics experts, who warn of potential disruptions to global supply chains and negative repercussions for the American economy.

This week, the Office of the United States Trade Representative (USTR) is holding public hearings for stakeholders to weigh in on the Trump administration's proposal which could impose fees of up to 1.5 million U.S. dollars on Chinese-linked vessels docking at U.S. ports.

Approximately 90 percent of all U.S. imports come through seaports. A majority of the vessels are either constructed, owned, or operated by China.

Experts fear the added costs could force shipping companies to turn to cost-saving efforts by limiting their stops to major U.S. seaports, like Los Angeles.

That could have major consequences for exporters in rural areas.

"For a grower in the Central Valley to have to spend another 500 to 1,000 U.S. dollars to truck their cargo down to Los Angeles or Long Beach, get on a vessel and move out to Asia, maybe the price for that product, think of a walnut handler as an example, gets too high on a per unit basis and suddenly they're competing with other growing nations," said Gene Soroka, executive director of the Port of Los Angeles.

Weston Labar, chief strategy officer of Waterfront Logistics, stressed that efforts to rebuild the sort of large-scale production capabilities necessary to produce ships in the U.S. would rely on far more than proposed protections.

"I think there's a strong likelihood that something could come to fruition. My hope is that attached with it is a common sense time frame on how we have the right type of workforce and the right type of supporting industries like steel and others to support shipbuilding in the United States, as opposed to just saying, we're going to start charging fees on Chinese built ships because there's no alternative right now. As admirable as the end goal is, if it's not done the right way, it could have catastrophic impacts to our global supply chain and really to the American consumer base," said Labar.

Last month, the USTR office announced that it is seeking public comment on proposed actions in the Section 301 investigation into China's maritime, logistics and shipbuilding sectors, including the imposition of port fees.

The Chinese commerce ministry said the U.S. Section 301 investigation is a typical act of unilateralism and protectionism which seriously violates World Trade Organization rules and warned that the U.S. proposal to levy port fees on Chinese ships could backfire.

Experts warn of global trade fallout as U.S. proposes port fees on Chinese-linked ships

Experts warn of global trade fallout as U.S. proposes port fees on Chinese-linked ships

Experts warn of global trade fallout as U.S. proposes port fees on Chinese-linked ships

Experts warn of global trade fallout as U.S. proposes port fees on Chinese-linked ships

Experts warn of global trade fallout as U.S. proposes port fees on Chinese-linked ships

Experts warn of global trade fallout as U.S. proposes port fees on Chinese-linked ships

China will roll out a series of targeted measures to stabilize investment and unlock greater space for private capital, an official said on Thursday.

Chen Changsheng, deputy director of the State Council Research Office who participated in the drafting of this year's Government Work Report, made the statement at a press briefing held in Beijing.

He noted that China will leverage the guiding role of government funding and the driving effect of major projects to shore up investment.

Total government investment this year is set to exceed five trillion yuan (about 725 billion U.S. dollars), which will come from central budget investment and local government special bonds for major national strategies and security capacity building projects and equipment upgrades. Meanwhile, 109 major projects have been planned in the draft outline of the 15th Five-Year Plan (2026-2030).

China will also stimulate investment by opening up more application scenarios for businesses.

On the traditional front, a long-term mechanism will be improved to encourage private enterprises to participate in major national projects. For emerging sectors, China will further open scenarios in biomedicine, aerospace, and the low-altitude economy.

"Low-altitude economy has developed rapidly in recent years, with sound applications seen in fields such as agriculture, forestry plant protection, as well as surveying and inspection. Going forward, we will accelerate the opening of airspace resources and streamline approval procedures for low-altitude flights. This will unlock new scenarios including low-altitude logistics and urban management. Similar new opportunities can also be found in service robots and other sectors, all of which will create new space for private investment," Chen said.

By deepening reforms to further unlock investment potential, China will ease market access in the service sector, speed up revisions to the Bidding Law and the Government Procurement Law, and advance price reforms to broaden investment access for more enterprises.

"We will see a new round of investment potential unleashed. Major projects including the national water network, a new round of power grid upgrades, new generation communication networks, and computing power networks will drive massive investment, including demand from urban development. In addition, the campaign this year to expand and upgrade the service sector and the development of emerging industries will further expand space for private investment," Chen noted.

China to take measures to boost investment, expand space for private investment in 2026: official

China to take measures to boost investment, expand space for private investment in 2026: official

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