In recent days, China has escalated its trade war with the US. Now it is further doubling down on restrictions on export and import and introducing new required fees on American vessels. The Chinese Ministry of Transport announced that it will charge U.S. ships 400 yuan, approximately $56, per net ton starting immediately. This fee is the same amount currently charged to Chinese ships by the U.S. They bid $50 per net ton of carbon emitted.
China’s frustration with the U.S.’s dubious trading practices is reaching a boiling point. It thinks these practices “grossly obscure” international trading principles and “grossly harm” maritime trade with its counterpart. Earlier this month, China expanded its “unreliable entities” blacklist. That has since grown to include the chip consulting firm TechInsights as a direct response to perceived threats made against its economic interests.
China has been central to the global maritime industry, recently commanding more than half (53.3%) of shipbuilding worldwide. As part of its retaliatory measures, China plans to gradually increase these fees over time, extending through April 17, 2028. The designated vessels also cover those owned by U.S. companies or individuals who own at least a 25% interest. Moreover, it’s limited to vessels that fly the U.S. flag or were constructed in the United States.
This U.S. President Donald Trump and Chinese President Xi Jinping just last month. In their meeting, one-on-one trade relations were front and center. A Trump-Xi meeting will take place in South Korea at the APEC summit in a few weeks. This evolution leads us to some critical considerations about how they will shape conversations to come.
“The Trump administration continues to underestimate China and this needs to stop.” – Peter Alexander
Analyst’s caution that strategies being advanced by the U.S. administration could fail to account for the lasting impacts of their policies. This oversight could have disastrous repercussions for U.S. foreign policy.
“There seems to be little consideration given to second and third-order effects of policy choices.” – Peter Alexander
Both nations are obviously caught in a tit-for-tat fight where every move is met with an equal counter-move. China’s most recent charges are an example of how far it is willing to go. It seems prepared to challenge what it views as unjust trading practices.
“Have there been any lessons learned by the Americans over the past six months? It certainly doesn’t seem so.” – Peter Alexander
Tensions continue to escalate, and stakeholders in both countries are watching closely. They want to know how these developments will affect US approach to future trade negotiations and US bilateral trade relations. The result of these tense standoffs will play a crucial role in shaping the future maritime trade landscape.