China issues retaliatory rules ahead of US port fee targeting Chinese vessels

As a new US port fee targeting China-built or -operated vessels is set to take effect in two weeks, China has revised its international maritime transport rules to allow retaliatory measures, including charging special fees or restricting access to Chinese ports.

China will implement necessary countermeasures against any country or region that imposes or supports discriminatory bans, restrictions or similar measures targeting Chinese operators, vessels or crews, according to the revision released on Monday.

“These countermeasures include, but are not limited to, charging special fees on their vessels when calling at Chinese ports, prohibiting or restricting these vessels’ port access in China, and barring or restricting their organisations or individuals from accessing China-related maritime data or operating in international shipping and related services to and from Chinese ports,” the revision said.

It was approved by Premier Li Qiang and took effect immediately.

The move could be regarded as a response to the Office of the US Trade Representative’s Section 301 investigation into China’s maritime sector and would further complicate shipping routes connecting the two countries, Guotai Junan Futures said in a note on Tuesday. Section 301 investigations aim to determine whether a foreign government’s policies or acts are discriminatory, and whether they burden or restrict US commerce.

The transpacific shipping route has seen considerable volatility this year, driven by tit-for-tat tariff measures between the world’s two largest economies. Carriers are also adjusting vessel deployments on the route to avoid or minimise exposure to the coming US port fees.

South China Morning Post