AsianFin -- China on Tuesday started to implement countermeasures against new U.S. port fees and urged Washington to seek solution, instead of tariff and other retaliatory actions, to address trade concerns.
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China's Ministry of Transport on Monday released ten implementation measures to charge U.S. ships for docking at Chinese parts, effective on Tuesday, October 14. The ministry outlined a phased escalation for the special port fees on eligible U.S. vessels berthing at Chinese ports, which will initially be RMB400 yuan (about $56.3) per net tonne from Tuesday, essentially the same as the $50 per net ton that the U.S. is levying on Chinese ships starting the same day, and increase annually on April 17 for the subsequent three years.
The special port fees will apply to ships owned or operated by U.S. businesses, organizations and individuals hold a direct or indirect stake of 25 percent or more, as well as all the U.S.-flagged and U.S. built vessels, according to the document. For vessels calling at multiple Chinese ports in a single voyage, the special fees will be charged only at the first port of call, and fees will be charged for a maximum of five voyages per vessel per year, the document stated, just as the ministry’s statement last week announcing its decision to impose the special fees.
Unlike the statement last week, the document listed some exemptions. Certain vessels built in China, vessels without load that enter Chinese shipyards solely for repair purposes, as well as other vessels otherwise determined to be exempt, shall not be subject to the special fee, according to the document.
The shipowner or agent shall, seven days prior to the vessel’s estimated arrival at Chinese port, report relevant information including country of build, flag and owner to the maritime administration authority at the port of destination, and pay the fees. A vessel that has failed to pay the port fee will be barred from loading and unloading operations in port.
The ministry said the special port fee on U.S. vessels is China’s response to the U.S. decision to impose additional port fees on Chinese ships after a Section 301 investigation. The document said the scope, standards, and effective time and expiry time of the special port fee will be adjusted dynamically depending on the situation.
Commenting on U.S. President Donald Trump’s last Friday threat of an additional 100% tariffs on China as the retaliation for China’s recent rare earth export controls, Chinese foreign ministry spokesperson Lin Jian on Monday said that China firmly rejects the recent U.S. restrictions and sanctions on China, and will do what is necessary to protect its legitimate rights and interests. Threatening high tariffs is not the right way to deal with China, Lin said, citing remarks of a spokesperson for China's Ministry of Commerce (MOFCOM).
Lin urged the U.S. to correct its approach and act on the common understandings Trump and Chinese leader Xi Jinping reached in their phone calls last month. The two sides can and should address each other’s concerns through dialogue and manage differences on the basis of equality, respect and mutual benefit to keep bilateral ties on a steady, sound and sustainable track, said Lin. He warned that China will be firmly resolved in taking measures to defend its legitimate rights and interests if the U.S. keeps refusing to change course.
Lin denied any connection with Pakistan when asked to comment on reports that claimed Pakistan, using Chinese equipment and technology, was exporting rare earths to the United States, which allegedly prompted China to introduce new strict regulations on controlling the export of rare earth-related technologies. The reported stories are either misinformed or invented, or even designed to drive a wedge between China and Pakistan, said Lin, adding that they are just groundless.
A MOFCOM spokesperson on Sunday defended China's export control measures on rare earths and related items announced last week as a legitimate action, while urging the United States to properly manage differences through dialogues and on the basis of mutual respect and equal-footed consultation. "China's export controls are not export bans," said the spokesperson. "All applications of compliant export for civil use can get approval, so that relevant businesses have no need to worry."
