The government on April 17 announced that after review of a petition filed with the Office of the U.S. Trade Representative (USTR) by five national labor organizations – including the SIU-affiliated Maritime Trades Department – the USTR is initiating an investigation of acts, policies, and practices of the People’s Republic of China (PRC) targeting the maritime, logistics, and shipbuilding sectors for dominance.
“The petition presents serious and concerning allegations of the PRC’s longstanding efforts to dominate the maritime, logistics, and shipbuilding sectors, cataloguing the PRC’s use of unfair, nonmarket policies and practices to achieve those goals,” said Ambassador Katherine Tai. “The allegations reflect what we have already seen across other sectors, where the PRC utilizes a wide range of non-market policies and practices to undermine fair competition and dominate the market, both in China and globally. I pledge to undertake a full and thorough investigation into the unions’ concerns.”
As explained in a formal notice, the USTR is seeking public comments and will conduct a public hearing in connection with this investigation.
Days before the announcement, AFL-CIO President Liz Shuler submitted a letter supporting the petition. In part, the communication reads, “On behalf of the 60 affiliates of the AFL-CIO, representing 12.5 million working people across our economy, I am writing today in support of the Section 301 petition filed on March 12, 2024, regarding the Chinese government’s policies in the maritime, logistics and shipbuilding sector. This petition was filed by the United Steelworkers (USW), Machinists (IAM), the International Brotherhood of Boilermakers (IBB), the International Brotherhood of Electrical Workers (IBEW) and Maritime Trades Department, AFL-CIO.
“For decades, the People’s Republic of China has had a comprehensive strategy to dominate global transportation and logistics networks – threatening both U.S. economic and national security,” Shuler continued. “The PRC provided more than $130 billion in funding to support its shipbuilding between 2010 and 2018. China’s shipbuilding orders have grown to more than 50% of world production. In just the first half of 2023, Chinese shipyards received more than 72% of the world’s newly received orders for ships.”
A longtime friend of the SIU, Shuler added, “The PRC’s predatory trade and economic practices tilt the playing field against our shipbuilding industry, hurting workers not only at our shipyards but also throughout the domestic supply chains vital to this sector. In 1975, U.S. shipyards employed more than 180,000 workers and had orders for more than 70 commercial ships. Over the past several decades, the United States lost more than 70,000 shipyard jobs, and key upstream supply chains deteriorated. In 2022, the United States had only five large oceangoing vessels under construction, while the PRC had more than 1,700. The PRC has more than 5,500 flagged merchant vessels in oceangoing service; the United States has fewer than 80 United States–flagged vessels in international service.”
She also underscored the U.S. Merchant Marine’s crucial role as America’s fourth arm of defense: “The vast majority of military supplies transit on commercial shipping vessels. In times of crisis and conflict, commercial ships are critical to the movement of military personnel, supplies, food and fuel. A healthy commercial shipbuilding industry is also key to supporting the national network of upstream industries, their workers and the communities they support. Large oceangoing ships require an immense amount of steel, paint, glass, rubber, aluminum, electronics and countless other manufactured inputs. These vessels are an important driver for our economy and provide capacity critical to ensuring our emergency preparedness and national security.”
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