Former Malaysian official John Pang has slammed the U.S. proposal to impose 1.5 million U.S.-dollar fines on Chinese ships entering U.S. ports, warning that the move will not only disrupt global shipping efficiency, but also will shatter the U.S. dream of reviving its declining shipbuilding industry.
The Office of the U.S. Trade Representative (USTR) has recently held public hearings for stakeholders to weigh in on the Donald Trump administration's proposal which could impose fees of up to 1.5 million U.S. dollars on Chinese-linked vessels docking at U.S. ports.
John Pang, former Malaysian government official and senior fellow of the Belt and Road Initiative Caucus for Asia Pacific, criticized the proposal as "the most bizarre and gangster-like" trade policy yet.
"This is, of course, like all the other measures, going to backfire. It's not going to work. So, I think this is the most bizarre of them all and the most almost gangster-like and desperate. Because I think even U.S. shippers, we've just had hearings where shipping companies have had a chance to give their view on this, and they're talking about, for example, each TEU container costing 600 (U.S.) dollars more to exit the U.S. So, it's going to impose increased costs for U.S. trade. It's going to, of course, disrupt global shipping efficiency. It hurts everyone. It's precisely the kind of lose-lose thing that was discussed earlier," he said.
Pang emphasized that the fines would create a lose-lose scenario.
"I understand that they want to sort of raise, to bring back the U.S. manufacturing industry, the shipbuilding industry. But it's 200 times less than China's. It's going to take a very long time, and you're destroying your own economy and others while doing this. It's just a failure to understand how the systemic causes or conditions for success in industry. And one of those conditions for success is healthy integration with others," Pang said.
Last month, the USTR office announced that it was seeking public comment on proposed actions in the Section 301 investigation into China's maritime, logistics and shipbuilding sectors, including the imposition of port fees.
The Chinese commerce ministry has said the U.S. Section 301 investigation is a typical act of unilateralism and protectionism which seriously violates World Trade Organization rules. It has also warned that the U.S. proposal to levy port fees on Chinese ships could backfire.
US proposal to levy port fees on Chinese ships to surely backfire: former Malaysian official
US proposal to levy port fees on Chinese ships to surely backfire: former Malaysian official
