Protectionist shipbuilding measures will create more problems for US

The US Trade Representative's Office is holding a public hearing on its proposed port fees targeting Chinese-built vessels this week, with the move by the Donald Trump administration to 'resurrect' US shipbuilding facing pushback from businesses.

Framing the fees as a response to China's "unfair" practices and of critical importance for national security, the USTR baselessly argues that Chinese government subsidies to its shipbuilding sector harm US businesses, while posing economic and national security risks by creating dependencies that Beijing could weaponize in a potential conflict. These are nothing but excuses fabricated by the US administration to justify its attack on the Chinese shipbuilding industry. The other aim of the move, which enjoys bipartisan support in Congress, is to discourage shippers and ocean carriers from buying Chinese vessels so as to enable US shipyards to fill the vacancy left by their Chinese counterparts.

But the question is whether the stone will prove too heavy to be used to kill the two birds it is aimed at.