A naval and fiscal battle is looming between China and the United States. Starting Tuesday, October 14th, Chinese vessels will have to pay a heavy tax to dock in American ports. Announced back in April, this measure is supposed to revive US shipyards, according to Washington. Beijing has also announced a response with similar measures.
Concretely, vessels manufactured in China or another country, but owned or operated by a Chinese entity, will have to pay specific fees. Western shipowners are not spared either, as they own a significant fleet of ships built in China.
For the United States, this is about countering Chinese dominance in commercial shipbuilding and reviving their own domestic construction. American shipyards now account for only 0.1% of global shipbuilding.
An investigation had concluded that China uses policies and practices to dominate the freight, maritime logistics, and shipbuilding sectors. All of these practices pave the way for US penalties.
Exemption for ships built in China
Beijing will also tax American ships and shipowners that dock in Chinese ports. This Tuesday, October 14th, Beijing stated it has begun imposing new port fees on vessels owned, operated, or built in the United States, or flying the American flag. According to details relayed by the public broadcaster CCTV, an exemption is notably in place for ships built in China.
The effects of these measures will be more damaging for China than for the United States, which builds very few commercial ships. But one thing is certain: this new escalation will further complicate global trade, already disrupted by customs tariffs.