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U.S. to levy fees on ships linked to China, push allies to do similar – draft executive order

LONDON--The United States is planning to charge fees for docking at U.S. ports on any ship that is part of a fleet that includes Chinese-built or Chinese-flagged vessels and will push allies to do similar or face retaliation, according to a draft executive order dated February 27 and seen by Reuters on Thursday.

The administration of U.S. President Donald Trump is drafting an executive order that aims to resuscitate domestic shipbuilding and weaken China’s grip on the global shipping industry.

The draft executive order proposes fees should be imposed on any vessel that enters a U.S. port, “regardless of where it was built or flagged, if that vessel is part of a fleet that includes vessels built or flagged in the PRC (People’s Republic of China).”

The full executive draft seen by Reuters on Thursday also calls on U.S. officials to engage allies and partners to do similar or risk retaliation.

The U.S. would also impose tariffs on Chinese cargo-handling equipment, according to the draft order.

“The national security and economic prosperity of the United States is further endangered by the People’s Republic of China’s unfair trade practices in the maritime, logistics, and shipbuilding sectors,” the draft order said.

Reuters had reported on Wednesday on plans to impose fees on Chinese-made ships from a draft fact sheet of the 18-point executive order.

The U.S. Trade Representative’s office proposed last monthto levy fees of up to $1.5 million on Chinese-built vessels entering U.S. ports after a probe into China’s growing domination of global shipbuilding, maritime and logistics sectors.

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