U.S. Senator Tammy Baldwin Applauds Report on China’s Unfair Trade Practices in Shipbuilding

U.S. Senator Tammy Baldwin (D-WI) is applauding the newly released report from the United States Trade Representative outlining how China has used unfair trade practices to undercut American shipbuilding, hurting American workers, businesses, and national security.

Senator Baldwin called on the administration to fight China’s unfair trade practices, leading her colleagues in support of the United Steelworkers’ (USW) effort to have United States Trade Representative (USTR) Katherine Tai initiate a full investigation into China’s maritime, logistics, and shipbuilding sectors. Today’s report – which lays out China’s unfair, targeted efforts to dominate the shipbuilding and maritime industry – paves the way for the incoming administration to implement remedies and level the playing field.

“Wisconsin workers carry on a proud tradition of building the world-class ships that protect our nation at home and abroad. This report shows what I knew all along: China has been undercutting these hardworking men and women and cheating the system, threatening an industry that is critical to our economy and keeping Americans safe,” said Senator Baldwin. “Looking ahead to the next administration, I’m calling on President-elect Trump to crack down on these cheaters, level the playing field for American workers, and safeguard our national defense by supporting Made in America shipbuilding.”

China’s Targeted Dominance in Shipbuilding Sector

The report released today by the USTR found that China targeted the maritime, logistics, and shipbuilding sectors for dominance, concluding that the PRC’s targeted dominance in these sectors is unreasonable and burdens or restricts U.S. commerce, and is therefore “actionable” under Section 301. The report lays out China’s efforts to target the shipbuilding and maritime industry for dominance – using state-sponsored financial support to elevate their own industry, imposing barriers for foreign firms, and stealing intellectual property to give China’s shipbuilding and maritime industry an advantage. According to the report, China also severely and artificially suppressed labor costs in the maritime, shipbuilding, and logistics sectors, undercutting American workers.

Senator Baldwin has been leading the charge to level the playing field for Wisconsin workers. In March, Senator Baldwin joined USW and other labor leaders for a press conference in support of the American shipbuilding industry and to call on Trade Representative Tai to conduct a full investigation. In April, the USTR announced they were heeding that call and launching an investigation into China, resulting in today’s report that lays the groundwork for the Trump Administration to impose appropriate penalties on China to support American workers.

Restoring U.S. Shipbuilding Industry

Over the last 20 years, the United States has lost industrial shipbuilding capacity while China’s subsidized shipbuilding has only grown. State-owned enterprises and other facilities in China are now capable of producing over 1,000 ocean-going vessels a year, while the United States currently produces fewer than ten. While shipbuilding capacity, suppliers, and shipyards remain vital to the U.S. economy and national security, China’s uncompetitive trade practices have led to 25,000 domestic shipbuilding suppliers leaving the U.S. market over the past 20 years.

“As a shipbuilder by trade, I’ve seen firsthand how China’s unfair trade practices have decimated the U.S. shipbuilding and maritime industry,” said International Association of Machinists Union President Brian Bryant. “It is well past time to take swift and bold action to restore U.S. shipbuilding to a position of strength. As the largest shipbuilding union, the IAM stands ready to work with all partners in this fight to protect our national security, reinvigorate this critical industry, and defend the dedicated and skilled American workers who build these vessels for our military, commercial industry and more.”

Championing Buy America Policies

Senator Baldwin has long championed Buy America policies to support American businesses and workers. She fought to advance her American Made Navy Act in last year’s annual defense legislation, which would ensure by 2033 any new Navy ship purchased uses 100% domestically produced materials, like propulsion systems, shipboard components, couplings, shafts, support bearings, and more. She also worked to include strong Buy America standards in the Bipartisan Infrastructure Law.

A full version of the USTR’s report is available here.