The Congressional Research Service updated the In Focus report on Section 301 and China: Shipping and Shipbuilding Issues. The report includes a call-out section on the 301 process and timeline, USTR’s proposed remedies, and options for Congress, noting that “U.S fees alone arguably are unlikely to fully address U.S. industry gaps, PRC anticompetitive practices, and the effects of PRC actions on U.S. allies.”
Congress could consider whether to support the U.S. shipbuilding industry through grants or tax incentives. It might consider the effects of U.S. tariffs on inputs (e.g., steel) for U.S. shipbuilding. It might examine corporate deals (e.g., U.S. BlackRock’s bid for some of Hong Kong’s Hutchison Whampoa’s port operations, and Frances’ CMA CGM’s plan to invest $20 billion in U.S. shipping) to assess their effectiveness in advancing U.S. interests. Congress also might consider whether to act on USTR’s proposals to
- Address PRC anticompetitive shipping practices;
- Ban PRC equipment and data systems of concern and create preferences for non-PRC alternatives; and
- Recommend plurilateral efforts to counter PRC actions.