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Congressional ____
~ Research Service
Labor Unions Request Section 301
Investigation of China's Shipbuilding and
Maritime Policies
March 25, 2024
On March 12, 2024, five major U.S. labor unions filed a petition under Section 301 of the Trade Act of
1974 requesting that the Office of the U.S. Trade Representative (USTR) investigate certain policies and
practices of the government of the People's Republic of China (PRC or China) concerning the maritime,
logistics, and shipbuilding sectors. The petitioners allege that the PRC government, through non-market
means, has seized market share, suppressed prices, and created a worldwide network of ports and
logistics infrastructure that threaten[s] to discriminate against U.S. ships and shipping companies, disrupt
supply chains and undermine vital [U.S.] national security interests. USTR has 45 days to review the
petition and determine whether launching an investigation would effectively address the matters raised by
the petitioners.
Members of Congress may have an interest in monitoring USTR's actions in this case. China's drive to
develop an integrated global maritime supply chain and project its maritime power globally has
intensified debate among some in Congress about the state of the U.S. commercial shipbuilding industry.
The debate also reflects growing congressional concerns about whether the United States has sufficient
shipbuilding capability and capacity to address threats to U.S. economic and national security. Some
Senate and House Members support the labor unions' petition and have asked USTR to initiate a Section
301 investigation.
What is Section 301?
Title III of the Trade Act of 1974 (Sections 301-10, codified at 19 U.S.C. §§2411-20) is collectively
referred to as Section 301. It grants USTR a range of responsibilities and authorities to investigate
foreign trade practices and impose trade sanctions on countries that are found to violate U.S. trade
agreements or engage in acts that are unjustifiable, unreasonable, or discriminatory, and burden
U.S. commerce. Prior to 1995, the United States often used Section 301 to pressure other countries to
eliminate trade barriers to U.S. exports. The creation of an enforceable dispute settlement mechanism in
the World Trade Organization (WTO), supported by the United States, reduced the use of Section 301.
While the United States retains the flexibility to seek recourse for unfair foreign trade practices in the
Congressional Research Service
https://crsreports.congress.gov
IN12338
CRS INSIGHT
Prepared for Members and
Committees of Congress](ViewImageLocal?handle=hein.crs/goveost0001&div=1&collection=&method=preview&ext=.png&size=3)
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