US Trade Chief Warns China Against Retaliation on Companies Aiding American Industry

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Oct 22, 2025 - 09:58 Updated: Oct 22, 2025 - 09:47
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US Trade Chief Warns China Against Retaliation on Companies Aiding American Industry

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U.S. Trade Representative Jamieson Greer warned China against intimidating foreign countries that support U.S. efforts to develop critical industries, vowing to respond “appropriately” as Beijing moves to dominate key industrial sectors.

Greer issued the warning in a statement on Oct. 20, following China’s sanctions of five U.S.-linked subsidiaries of South Korean shipbuilding giant Hanwha Ocean. The sanctions, imposed last week, were described by China’s commerce ministry as a countermeasure against Hanwha for assisting Washington’s investigation under Section 301 of the Trade Act of 1974 and actions to address Beijing’s shipbuilding practices.

“China’s recent retaliatory actions against private companies across the globe is part of a broader pattern of economic coercion to influence American politics and control global supply chains by discouraging foreign companies from investing in America’s shipbuilding and other critical industries,” Greer said.

Greer’s warning comes after South Korean officials said last week that China’s sanctions threatened to undermine ambitious plans for a shipbuilding partnership between the United States and South Korea.

“Attempts at intimidation will not stop the United States from rebuilding its shipbuilding base and responding appropriately to China’s targeting of critical industrial sectors for dominance,” Greer added. “We remain committed to defending our companies, securing supply chains, and encouraging allied investment in America’s industrial future.”

The Office of the U.S. Trade Representative (USTR) released its findings in a report in January, noting that China’s targeted dominance of the global shipbuilding, maritime, and logistics sectors is “unreasonable” and is “actionable” under U.S. trade law.

The report noted that China’s share of the global shipbuilding industry rose from less than five percent of global tonnage in 1999 to over 50 percent in 2023. Additionally, China controlled production of 95 percent of shipping containers and 86 percent of the world’s supply of intermodal chassis, among other critical components.

China “burdens or restricts U.S. commerce because it undercuts business opportunities for and investments in the U.S. maritime, logistics, and shipbuilding sectors,” the report states. China also restricts competition and choice, “creates economic risks from dependence and vulnerabilities in sectors critical to the functioning of the U.S. economy,” and undermines supply chain resilience, according to the report.

In February, the USTR announced proposed actions to remedy China’s maritime dominance, including charging up to $1.5 million for Chinese-built vessels entering U.S. ports and port entrance fees of up to $1 million per vessel owned by Chinese transport operators.
The proposed remedies were welcomed by the House Select Committee on the Chinese Communist Party (CCP). In a statement issued on Feb. 28, Reps. John Moolenaar (R-Mich.) and Raja Krishnamoorthi (D-III.), chairman and ranking member of the committee, respectively, noted that the United States accounts for 0.2 percent of the world’s shipbuilding.

“We are firmly committed to working on a bipartisan basis to hold the CCP accountable for its unfair maritime practices and to revitalize our domestic shipbuilding industry and workforce,” the two lawmakers stated.

The USTR held a public hearing on the proposed remedies in March, and one of the witnesses was Ryan Lynch, CEO of Houston-based Hanwha Shipping, a U.S. subsidiary of Hanwha Ocean.
According to a USTR transcript of the hearing, Lynch voiced support for the findings in the Section 310 investigation and the agency fee proposal.

“The fee-generation potential, as proposed, creates a necessary foundation for financial support to enable the transfer of our fleet into the service of the United States as U.S. vessels,” Lynch stated. “Once implemented, we believe the proposed actions will support the efforts to capture the dynamic behavior of vessel operators and help make U.S. maritime capabilities great once again.”

In 2024, Hanwha Ocean and its affiliate Hanwha Systems acquired Philly Shipyard for $100 million. In August, Hanwha announced a $5 billion infrastructure plan for Philly Shipyard as part of South Korea’s commitment to U.S. shipbuilding growth.
On Oct. 14, the Trump administration’s new port fees for China-linked ships went into effect.
In retaliation, China announced that it would also impose additional charges on U.S. vessels docking at its ports starting on Oct. 14.
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Reuters contributed to this report.
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