“In contrast, the US has long overstretched the concept of national security, abused export controls, and imposed discriminatory measures against China. Since the China-US economic and trade talks in Madrid, the U.S. has continuously introduced new restrictions against China, severely harming China's interests and undermining the atmosphere of bilateral economic consultations. China firmly opposes this.”

The US Commerce Department added 32 firms, including 23 Chinese entities, to its Entity List on September 12, citing national security reasons. It accused them of acquiring or attempting to acquire US-origin items to support China's military modernization.

On September 13, the Chinese Commerce Ministry announced that it would initiate a full investigation into a complaint that American chipmakers are allegedly dumping products on the Chinese market. Separately, the State Administration for Market Regulation (SAMR) launched a further probe into Nvidia's alleged antitrust behavior.

Political tensions between China and the US have recently increased after China tightened its export controls on rare earths and related processing technologies on October 9. This prompted US President Donald Trump to call for an additional 100% tariff on Chinese goods imported into the US from November 1.

Trump had once said he might not hold a meeting with Chinese President Xi Jinping during the APEC Summit in South Korea later this month. However, US Commerce Secretary Scott Bessent said Monday that he still expects to see the Xi-Trump meeting.

Meanwhile, the fight between the US and China has extended to the shipbuilding sector.

In April of this year, the US Trade Representative (USTR), citing the results of its Section 301 investigation, accused Chinese shipbuilders and operators of using unfair practices to gain global market shares. It said it would, from October 14, impose:

• a fee of $50 per net ton on any Chinese-owned or operated ship entering a US port (this rate will rise each year, reaching $140 per net ton by April 2028);
• a fee of $18 per net ton or $120 per container on any Chinese-built and foreign-owned ship entering a US port (this rate will rise each year, reaching $140 per net ton or $250 per container by April 2028); empty ships, certain US-owned ships, ships entering the continental US from a voyage of less than 2,000 nautical miles, and certain specialised ships can be exempted;
• a fee of $14 per net ton or $150 per Car Equivalent Unit (CEU) on any non-US-built vehicle carrier entering a US port (one CEU equals roughly the space of a standard passenger car).

The USTR stated that the fee would be charged per rotation or string of US port calls, and no more than five times a year per individual vessel.

On October 10, the USTR revised the basis for calculating service fees on operators of non-US-built vehicle carriers, setting the cost at $46 per net ton.

The proposed fees took effect on Tuesday. It means that a Chinese bulk carrier with 50,000 net tons would face $2.5 million in fees for a single port call, while a large vessel could be charged up to $8.5 million each time it docks in the US.

“The Section 301 shipping fee policy is a blow to the very foundation of China's global commerce and strikes at the country's core interests,” a Hubei-based columnist using the pseudonym“Laoheikan” writes in an article published on October 7.“The policy's impact is not limited to China, but all countries.”

“Following the decline of US manufacturing, both the port infrastructure and shipbuilding industries have also fallen into stagnation,” he says.“Now Trump wants to revive them as part of his Make America Great Again (MAGA) movement. But he won't succeed and he will cause disruption.”

“Given that the US is declining, it is almost impossible for Washington to achieve a global blockade of Chinese trade and shipping,” he says.“As long as China dares to fight, it will be able to defeat America's plan.”

He says shipbuilding and maritime trade could become Washington's new battleground and strategic front in its rivalry with Beijing.

On October 10, China's Ministry of Transport said it would start levying a special port-entry charge of 400 yuan per net ton on US-linked container ships, which are defined as:

• ships owned or operated by US enterprises, organizations or individuals;
• ships owned or operated by enterprises or organizations in which US enterprises, organizations, or individuals directly or indirectly hold 25% or more equity (including voting rights or board seats);
• ships flying the US flag;
• ships built in the US.

It added that if these ships were built in China or are empty, their operators can be exempted from the new fees.

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A Guangdong-based columnist surnamed Chen suggests that a large US container ship may be required to pay $5.5 million to $15 million each time it docks at a Chinese port.

“The clause covering vessels with 25% or more US ownership is the real 'killer move.' It widens the impact to a global scale,” he says.“To avoid penalties, some firms may turn to offshore entities, change flags, or use second-hand ships to 'cleanse' their US ties. This will drive up logistic costs and reduce trade efficiency.”

Read: China tightens rules to block Pakistan rare earths exports to US

Follow Jeff Pao on Twitter at @jeffpao3

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