MKsports California, US, on Thursday, March 6, 2025.Photo:VCG" src="https://www.globaltimes.cn/Portals/0/attachment/2025/2025-03-07/6603e932-aea4-4aee-918c-4b9c0904a024.jpeg" />

Cranes load containers onto ships at the Port of Los Angeles in Los Angeles, California, US, on Thursday, March 6, 2025.Photo:VCG

A US draft executive order planning to levy fees on China-linked ships as reported by Reuters is a clear violation of WTO rules, will jack up US port costs and ripple through the supply chain, if it is implemented, a Chinese expert said on Friday.

The US is planning to charge fees for docking at US ports on any ship that is part of a fleet that includes Chinese-built or Chinese-flagged vessels and will push allies to act similarly or face retaliation, a draft executive order stated, Reuters reported on Thursday.

The draft executive order, dated February 27 and reviewed by Reuters on Thursday, proposes fees should be imposed on any vessel that enters a US port, "regardless of where it was built or flagged, if that vessel is part of a fleet that includes vessels built or flagged in the [China]," according to Reuters. 

The plan could inflict significant costs on major container carriers as well as on operators of ships that carry bulk food, fuel and autos, Reuters said.

The US administration is drafting the executive order in a bid to resuscitate domestic shipbuilding and weaken China's grip on the global shipping industry, Reuters claimed.

The US' plan to impose fees on vessels related to China is a unilateralist approach that violates WTO rules, Zhou Mi, a senior research fellow at the Chinese Academy of International Trade and Economic Cooperation, told the Global Times on Friday.

It will significantly increase port passage costs in the US, and this cost will be passed along the supply chain both upstream and downstream, leaving little room for the development of US enterprises, Zhou said.

"On the one hand, as it will lead to an increase in logistics costs, US enterprises will likely pass on this price to the downstream, thus increasing US supply chain costs. On the other hand, considering the US' limited shipbuilding capacity, restricting US firms from using Chinese ships will worsen the imbalance in its ship fleet and stunt the growth of its shipbuilding industry," Zhou added.

The document draws from a proposal from the office of the US Trade Representative (USTR) last month to levy fees on Chinese-built vessels entering US ports, according to the Reuters report.

The USTR office on February 21 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 Xinhua News Agency reported.

Commenting on the proposal to levy such fees, China's commerce ministry on February 27 said that charging fees on Chinese ships entering US ports would disrupt global supply chains and backfire on the US economy and employment.

If the US insists on imposing port fees, it will drive up global shipping costs and disrupt the stability of global supply chains, He Yadong, a spokesperson for the ministry said.

Such measures would also increase domestic inflationary pressures in the US, weaken the global competitiveness of US goods, and harm US consumers and businesses, the spokesperson warned.

The US Section 301 investigation is a typical act of unilateralism and protectionism, which seriously violates WTO rules, He noted.

China urges the US to respect the facts and multilateral rules, and refrain from going farther down the wrong path, the spokesperson said, noting that China will monitor US actions closely and take necessary measures to safeguard its legitimate rights and interests. 

Global Times