China Urges USTR to ‘Stop its Wrongdoings’ Over Proposed Port Fees

China‘s top foreign affairs department chastised the U.S. for its proposal to impose port fees on Chinese-operated and -built vessels, calling for the U.S. Trade Representative’s (USTR) office to “immediately stop its wrongdoings.”

At a Monday press conference, China’s foreign affairs ministry spokesperson Mao Ning said the proposed fees, alongside the recently added 20 percent tariff on Chinese imports, hurt both the U.S. and others.

“The move not only hikes global maritime shipping costs and disrupts the stability of global industrial and supply chains, but also increases inflationary pressures in the U.S. and hurts the interests of American consumers and businesses,” said Mao.

Under the USTR’s proposal, vessels operated by Chinese companies would either pay up to a $1 million service fee per ship calling at a U.S. port, or pay up to $1,000 per net ton of the vessel’s capacity. Chinese-built ships could see fines as high as $1.5 billion per port, and carriers could also be charged up to $1 million per port call if more than 50 percent of new orders comes from Chinese shipyards.

Shipping executives and analysts have argued that such measures would increase shipping costs across the board, and would affect every ocean carrier. Currently, China is responsible for building 70 percent of upcoming orders for ships, according to data from Linerlytica.

“The practice will ultimately fail to revitalize the U.S. shipbuilding industry,” Mao said. “We urge the U.S. to respect facts and multilateral rules, and immediately stop its wrongdoings. China will take necessary measures to defend its lawful rights and interests.”

The recommendations do not represent official policy until the Trump administration determines whether the new fees will be imposed. The USTR expects to host a public hearing about the proposal on March 24.

The USTR made the move in response to a nine-month investigation into China’s maritime, logistics and shipbuilding practices. That probe determined that the country had an “unreasonable” dominance of those industries due to policies that “unfairly depress costs” or provide other advantages.

At the time, China commerce ministry said the conclusions of the report were “full of false accusations.”

Another report released Tuesday by the Center for Strategic and International Studies suggested that foreign companies are inadvertently helping facilitate the expansion and modernization of China’s naval fleet.

Over 75 percent of the production at China’s shipyards was destined for firms based outside of China or Hong Kong, the report said.

China’s far distance ahead of the U.S. in shipbuilding capabilities along with the countries’ rocky trade relationship have provided the driving subtext throughout the probe, which was spurred on by a petition from five labor unions. While Chinese shipyards now produce over 1,000 ocean-going vessels a year, the United States produces fewer than 10, according to Clarksons Research.

In a speech to Congress on March 4, President Donald Trump announced he would create an office of shipbuilding in the White House that would cover both commercial and military vessels.

Trump did not provide further details beyond saying the office would offer special tax incentives to help reshore the industry. The office’s function has historically been housed in the Department of Transportation’s Maritime Administration and in Naval Sea Systems Command.

U.S. lawmakers have been throwing their support behind the U.S. shipbuilding push, as well as extending their hawkishness against China, with the bipartisan SHIPS for America Act having been introduced in Congress in December 2024.

That bill would require that within 15 years of its passage, 10 percent of all cargo imported into the U.S. from China must be imported on American-flagged vessels that are also and built in the U.S. and staffed by American crews.

Additionally, it would raise the percentage of U.S. government cargo that must sail on U.S.-flagged vessels from 50 percent to 100 percent.

Another piece of bipartisan legislation, the American Cargo for American Ships Act, was introduced by Congressmen Mike Ezell (R-Miss.) and Salud Carbajal (D-Calif.) on Tuesday. The bill aims to reduce the ongoing decline of U.S.-flagged ships, and strengthen the country’s cargo preference laws.

The act, if passed, would ensure that all cargo procured, furnished or financed by the Department of Transportation would be transported on private, U.S.-owned commercial vessels.

“Ensuring that American cargo is transported on American ships with American crew is a matter of economic strength and domestic investment,” Ezell said in a statement. “This bill prioritizes U.S. vessels and American jobs, reinforcing our maritime industry and reducing dependence on foreign shipping. I’m proud to introduce this legislation to support our domestic fleet, protect our supply chains, and keep America strong on the seas.”