China has escalated its maritime standoff with the US by targeting the capital markets.
In retaliation for the US introducing port fees on Chinese-built or flagged vessels, Beijing has imposed reciprocal levies on ships owned or operated by entities with at least 25 per cent American ownership.
Although both sets of fees are nearly identical in scale, China’s policy may have broader implications.
According to Reuters, it could affect companies such as BHP and Vale, which have American-listed shares, even if their ships are not Chinese-built.
Washington’s original plan would have imposed steep charges to favour US shipbuilding — a sector whose global share is minimal.
READ: Carriers reduce Chinese-built ships ahead of US tariffs
But after industry backlash, Reuters reported that the final measures were diluted, with exemptions for many US-based operators.
Still, China’s action signals that it is prepared to defend its dominance in global shipping even at the risk of trade disruption.
With its deep influence in maritime trade, Beijing can absorb retaliation from Washington while striking at the financial interests of US-linked firms.
