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Experts doubt viability of U.S. plan to revive shipbuilding by targeting China

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Experts doubt viability of U.S. plan to revive shipbuilding by targeting China

2025-03-25 19:39 Last Updated At:20:07

A new U.S. plan to impose millions of dollars in fees on Chinese ships is unlikely to succeed in reviving America's diminished shipbuilding sector, according to industry analysts.

The United States is considering fees of up to 1.5 million U.S. dollars on Chinese-made ships or vessels from fleets containing Chinese-built ships docking at U.S. ports. The move, reportedly part of a draft executive order by President Donald Trump, aims to revitalize the American shipbuilding sector, which currently accounts for only 0.1 percent of the global market.

The proposed fees follow a Section 301 investigation launched last year by the U.S. Trade Representative into China's alleged "unfair economic activities." The action has already drawn strong criticism from China.

Given more pressing concerns in sectors like automotive and semiconductors, the focus on shipbuilding raises questions about the administration's true motivations,

"The first aspect is that the United States is facing significant financial difficulties and needs to increase its revenue. Therefore, it has utilized all possible channels to boost its income. The second aspect is related to geopolitical considerations. The U.S. aims to control the world’s major shipping routes and key ports," said Huang Renwei, executive dean of the Fudan Institute for Belt and Road and Global Governance, noting that this involves restricting the global maritime activities of its strategic competitors, especially China.

This isn't the first attempt by the U.S. to bolster its domestic shipping industry through protectionist measures. The Jones Act, enacted in the 1920s after World War I, mandated that goods shipped between U.S. ports be transported on U.S.-built, -owned, and -operated vessels. While intended to revitalize the industry, the law was criticized for stifling competition, leading to higher prices and reduced innovation.

The disparity between U.S. and Chinese shipbuilding capacity is stark. In 2023, U.S.-made commercial ships comprised only 0.1 percent of the global total, compared to China's nearly 50 percent. U.S. shipbuilding capacity is less than one million tons, dwarfed by China's 40 million tons. Furthermore, U.S. labor costs are four times higher, and the industry faces a fragmented supply chain and outdated infrastructure.

Experts suggest that a genuine revival of U.S. shipbuilding would require significant investment and effort.

"If the United States wants to become a leader in commercial shipbuilding, that's going to take a lot of effort to rehabilitate shipbuilding yards, but also to train an army of workers who currently, maybe some years ago they used to work in the shipbuilding, but those skill sets have perhaps long been forgotten," said John Anthony Quelch, a British-American academic.

The proposed fees may shift public attention away from urgent domestic problems, but history has shown that monopolizing an industry by excluding competitors can only backfire in the end, according to experts.

Experts doubt viability of U.S. plan to revive shipbuilding by targeting China

Experts doubt viability of U.S. plan to revive shipbuilding by targeting China

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Chinese steel furniture makers turn to new markets to overcome US tariff challenges

2025-04-29 19:07 Last Updated At:19:47

Steel furniture-making companies in central China's Henan Province have shown resilience in the face of the challenges posed by U.S. tariffs, with their intelligent production lines continuing to churn out high-quality and affordable steel products and smart marketing strategies helping to tap into new customer bases.

In Luoyang, an historic city which once served as an ancient capital of China, thousands of companies have been busy manufacturing steel furniture that is exported to over 100 countries and regions worldwide, with the industry here having a total output value approaching nearly 20 billion yuan (over 2.7 billion U.S. dollars).

Despite the economic impact of the trade measures taken by the Trump administration, including a 25-percent tariff on steel and aluminum products and the recent escalation on imports from China, a number of these Luoyang-based firms have been able to not only sustain but grow their orders by turning to new markets and deploying new strategic approaches.

At one steel furniture factory in the city, company executive Wei Pengfei has been guiding Indonesian distributors through its intelligent production line, demonstrating the advanced laser cutting and welding technologies adopted by the firm that achieve precision levels 10 times higher than most traditional manufacturing methods.

"Before visiting, the distributors questioned how could we offer such high quality at such affordable prices. But after seeing our intelligent factory, the supporting capabilities of our supply chain, and the logistics costs, they were thoroughly convinced," Wei said.

Earlier this year, during an overseas trade show, Wei discovered through discussions with clients that the humid climates of Southeast Asia often forces wooden furniture to undergo frequent repairs or be replaced. Recognizing this as a potential market opportunity for their steel-based products, he promptly organized a team to conduct in-depth market research.

After nearly a month of research and development, the company's steel plates not only perfectly replicated the color and tactile texture of wood but also crucially boast a lifespan three times longer than that of conventional wooden furniture. Upon launch, the steel product attracted numerous pre-orders from interested parties across the region, with Wei noting that since the start of April, the company has hosted over 20 distributors from both China and overseas.

"We have full confidence in expanding into markets in other countries, which could replace our current 30-percent market share in the United States. We are also highly confident in the future development of this industry," Wei said.

Some firms have had to think fast to respond to the U.S. tariff turmoil, with another Luoyang-based steel furniture company being hit with 10-million-yuan's worth of canceled orders within a 10-day period as a result of Trump's tariff actions.

Faced with this crisis, general manager Xiao Rui recognized the urgent need to shift the company's focus to domestic market to offset the losses. However, the transition presented significant challenges, including immature sales channels and limited marketing approaches.

"When we first attempted to enter the domestic market, we fell into a misconception for a while. We initially aimed to engage in business with well-established local distributors, only to realize that competing for market share against more seasoned industry players was quite challenging," Xiao said.

The ineffectiveness of traditional marketing methods prompted Xiao to turn to a more modern and creative approach, by producing engaging short videos to drum up online interest. Within a month, the company had published over a dozen of videos highlighting their workshop production methods and demonstrating the quality of their finished products in a hands-on manner, capturing the attention of a younger audience.

Through the utilization of this video marketing strategy, the company were able to diversify their channels, attract new customers, and secure fresh orders.

Furthermore, the firm has also identified the niche market of steel pet furniture, with items catered to customer's four-legged friends. Recently, they also unveiled their hottest new products at the Canton Fair in south China's Guangzhou, one of the country's largest and longest-running international trade events.

"When everyone found the current situation particularly challenging, we saw it as a great chance for us. The reshuffling of the market landscape has presented us with a new opportunity, given that there is still a demand for steel furniture worldwide, and no other region can replace China's advantages in this realm. We are quite confident that our domestic sales revenue will exceed 15 million yuan for the whole year," Xiao said.

Chinese steel furniture makers turn to new markets to overcome US tariff challenges

Chinese steel furniture makers turn to new markets to overcome US tariff challenges

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