MK sports the world's largest LNG-powered car carrier - a dual-fuel ro-ro ship with 7,800 parking spaces for Anji Logistics - is officially put into operation at Yantai Port in East China's Shandong Province on December 25, 2024. The vessel is expected to give automakers greater leverage in expanding their overseas production. Photo: cnsphoto" src="https://www.globaltimes.cn/Portals/0/attachment/2024/2024-12-25/1c73d707-4b52-4e62-9868-b7559f8d6e80.jpeg" />

Constructed by Jiangnan Shipyard Group, the world's largest LNG-powered car carrier - a dual-fuel ro-ro ship with 7,800 parking spaces for Anji Logistics - is officially put into operation at Yantai Port in East China's Shandong Province on December 25, 2024. The vessel is expected to give automakers greater leverage in expanding their overseas production. Photo: cnsphoto

China's government ministries and business groups on Friday expressed strong opposition to the US Trade Representative's latest Section 301 probe report targeting China's maritime, logistics, and shipbuilding industries. 

Chinese officials have denounced the report for violating WTO rules, lacking factual support, and serving as a protectionist tool.

The Ministry of Commerce (MOFCOM) voiced strong dissatisfaction and firm opposition to the report's findings, and pledged to take necessary measures to protect China's legitimate rights and interests. The Section 301 investigation exemplifies blatant unilateralism and protectionism, said a MOFCOM spokesperson on Friday.

China's Foreign Ministry also criticized the report on Friday, FM spokesperson Guo Jiakun said that China strongly deplores and firmly opposes it, and has made clear our position more than once. Guo called the move seriously violates WTO rules and is purely protectionism.

Chinese business groups also criticized the probe. The China Association of the National Shipbuilding Industry on Friday condemned the investigation as irresponsible, arguing it was based on flawed research. The group accused the US of disseminating distortions and falsehoods, calling the conclusions malicious attacks on China's shipbuilding industry.

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) expressed similar concerns on Friday, saying that the US is unfairly blaming China for its own industrial challenges. The chamber urged the US to carefully evaluate the risks and impacts of the Section 301 investigation on the global community, and avoid causing direct harm to all stakeholders, including the US side.

CCCME called for dialogue over confrontation and collaboration over zero-sum mentality to foster a healthy global economic environment.

Chinese experts also denounced the probe. Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Friday that the US shipbuilding industry's decline stems from structural deficiencies within the US and is unrelated to China's industrial policies and advancements. 

If the US imposes tariffs or other restrictions on China's shipbuilding industry, it could significantly increase costs for US imports, Zhou said. Given China's role as a major global shipbuilder, finding alternative sources would require substantial time and costs.

The US' Section 301 probe appears less focused on ensuring fairness in the shipbuilding and maritime market but rather aims to restrict sectors where China has established a competitive advantage, Huo Jianguo, a vice chairman of the China Society for World Trade Organization Studies in Beijing, told the Global Times on Friday.  

Section 301 investigations are conducted under the US' Trade Act, with the intention of investigating and intervening in other countries' industries, and even introducing restrictive measures based on the findings. Such investigations directly conflict with WTO rules, Huo said.  

The USTR has issued findings in the Section 301 investigation of China focused on China's dominance in the maritime, logistics, and shipbuilding sectors on Thursday. It labeled China's dominance in these sectors as "unreasonable," claiming this burdens US commerce and is therefore "actionable" under Section 301. 

According to a Reuters report, the USTR probe did not outline specific penalties for China's shipbuilding industry. The decision on the next steps will depend on President-elect Donald Trump, who is set to take office on Monday.

China's shipbuilding growth does not rely on alleged non-market practices but is underpinned by a robust industrial system, a highly skilled workforce, and an open business environment. China's maritime market has always remained open to global players, with no discriminatory policies against foreign vessels or companies. Chinese industrial policies are primarily guiding rather than mandatory while ensuring equal treatment for domestic and foreign enterprises, said the MOFCOM.

Various US studies show that the US shipbuilding industry lost its competitive advantage many years ago due to over-protection. The growth of relevant industries in China is a result of companies' tech innovation and participation in market competition, Guo added.