'Mistake On Top Of A Mistake': China Slams US Probe Into Its Maritime And Shipbuilding Sectors

The Chinese government has voiced strong objections to a U.S. investigation into its maritime, logistics, and shipbuilding industries.

What Happened: The Chinese Ministry of Commerce has referred to the investigation as a “mistake on top of a mistake,” as reported by CNBC on Thursday.

"In fact, the development of China's industries is the result of companies' technological innovation and active participation in market competition," the Chinese ministry said.

On Wednesday, the U.S. Trade Representative initiated an investigation into China’s maritime, logistics, and shipbuilding sectors, alleging that Beijing has been using “unfair, non-market policies and practices” to dominate these industries. The probe was launched under Section 301 of the Trade Act of 1974, which seeks to address unfair foreign government practices affecting U.S. commerce.

China has responded by accusing the U.S. of providing billions of dollars in “discriminatory” subsidies to its own industries while blaming China for adopting “non-market practices.”

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Why It Matters: The investigation was triggered by a petition filed by five national labor unions last month, urging the U.S. to probe the policies and practices of China’s maritime, logistics, and shipbuilding sectors. U.S. Trade Representative Ambassador Katherine Tai has committed to conducting a “full and thorough investigation into the unions’ concerns.”

President Joe Biden has also called on the USTR to triple tariffs on Chinese steel and aluminum imports, to safeguard American industries. Biden accused China of “cheating” in its steel trade practices in a speech to union workers in Pittsburgh on Wednesday.

Deborah Elms, head of trade policy at the Hinrich Foundation, suggested that the Section 301 investigation could potentially be more significant than Biden’s call for tariff hikes on Chinese steel and aluminum imports, as it sets the stage for further retaliation by the U.S. against China, and potentially vice versa.

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