China prepares legal grounds for shipping countermeasures against US port fees
BEIJING: China has amended a key maritime law to establish legal grounds for future countermeasures against what Beijing considers unfair treatment of Chinese ships or treaty violations by foreign governments that harm Chinese interests.
On Sept. 29, the State Council announced on its website the revisions to the International Maritime Transport Regulations, which had already been signed by Premier Li Qiang and took effect the previous day.
These revisions come as the US Trade Representative’s port fees, mainly targeting Chinese-built, owned and operated ships, are set to take effect Oct. 14. China holds an opposing stance to the US regarding new international bunker rules that could be adopted by the International Maritime Organization next month.
Among the five revisions unveiled by the State Council, a new clause empowers Beijing to take countermeasures if foreign countries impose discriminatory restrictions on Chinese shipping, shipowners or seafarers.
The countermeasures include, but are not limited to, imposing special fees on vessels from the offending country calling at Chinese ports, restricting or banning those ships from entering Chinese ports, blocking access to Chinese maritime data and information, and limiting business opportunities in the country’s maritime logistics sector.
Trade tensions
The USTR will initially impose extra fees on Chinese ships, ranging from $18 to $50 per net ton, as Washington seeks to counter what it describes as China’s maritime dominance amid ongoing trade tensions between the two countries.
The fees, announced in February prior to several revisions, have begun to deter Chinese ships from US ports and have caused trade disruptions, as affected parties seek to safeguard their profitability.
According to S&P Global Commodity Insights data, in 2024, Chinese-built tankers transported 22% of US crude oil exports and imports and 19% of refined products, while the country’s total international oil flows reached 12.3 million b/d.
State-backed Cosco Shipping Holdings, China’s top container shipping group, could need to pay $1.5 billion to the US in 2026, according to estimates by HSBC.
Separately, the State Council states that if a foreign government damages China’s interests by violating international maritime transport treaties signed by the Chinese government, Beijing could take remedial measures and suspend its own obligations.
Shipping professionals expect IMO member states to vote next month on amendments to the International Convention for the Prevention of Pollution from Ships, known as the Net-Zero Framework. This framework would impose a cost on maritime greenhouse gas emissions from marine energy use. The initiative is backed by China and European countries, but is opposed by the US.
Source: Platts