China Imposes Retaliatory Port Fees on US Ships Amid Escalating Maritime Trade Tensions

China has implemented new "special port fees" on American ships in direct retaliation to similar US measures, charging 400 yuan ($56) per net tonne starting October 14. This maritime trade dispute highlights growing tensions between the world's largest economies, with China—currently producing nearly half of all newly launched vessels globally—defending the move as protection for its shipping industry against US protectionism.

China Counters US With 'Special Port Fees' On American Ships

China announced on Friday the implementation of "special port fees" targeting ships operated by and manufactured in the United States, a direct response to similar charges imposed by Washington on Chinese-linked vessels in April.

According to Beijing's transport ministry, these new incremental fees on American vessels will take effect from October 14 at Chinese ports nationwide.

The United States shipbuilding industry, once dominant following World War II, has experienced significant decline and currently represents merely 0.1 percent of global production capacity.

The shipbuilding sector is now primarily controlled by Asian countries, with China manufacturing nearly half of all newly launched vessels, followed by South Korea and Japan.

In April, US Trade Representative Jamieson Greer stated that implementing port fees on Chinese ships would help challenge Beijing's market dominance and "send a demand signal for US-built ships."

As China announced its retaliatory port fees on Friday, a spokesperson from the Chinese transport ministry labeled the US actions as "protectionist."

Under the new regulations, US vessels arriving at Chinese ports will incur fees of 400 yuan ($56) per net tonne. This rate will increase to 640 yuan in April, with annual increments thereafter.

These charges apply to US-flagged vessels, ships constructed in the United States, and those owned or operated by American companies or individuals.

The fee structure specifies that each vessel will be charged only at its first port of call—not at each subsequent docking location—and no ship will be charged more than five times annually.

China's new policy takes effect on the same date that US ports begin implementing fees for Chinese-built and operated ships arriving at American harbors.

The US fees originated from an investigation into China's shipbuilding sector initiated under the previous administration.

The American fee structure includes separate charges for Chinese-operated vessels and Chinese-built ships, with both categories subject to gradual increases in subsequent years.

For Chinese-built ships entering US ports, the initial fee is set at $18 per net tonne or $120 per container—potentially resulting in substantial costs, such as $1.8 million for a vessel carrying 15,000 containers.

The unnamed Chinese spokesperson described Beijing's new levies as a "legitimate measure to safeguard the lawful rights and interests of Chinese shipping companies."

"We urge the US side to immediately correct its wrongful practices and cease its unwarranted suppression of China's shipping industry," the spokesperson added.

Source: https://www.ndtv.com/world-news/china-says-to-impose-special-port-fees-on-us-linked-ships-9431103