China has dominated the global shipping industry for the past two decades, and its this ascension that has led to trade friction with the United States. Over this period, China has transformed itself from a marginal player into a true heavyweight of global shipbuilding and maritime logistics, and today controls over 50% of the global shipbuilding market as of 2023, which stands in stark contrast to the less than 5% in 1999. Beyond shipbuilding, China now commands 95% of global shipping container production and 86% of the world’s supply of intermodal chassis, which are critical components for the smooth movement of goods across ships, trains, and trucks. This consolidation has allowed China to exert significant influence over global supply chains and maritime infrastructure, which has certainly prompted concerns from western governments about dependency, reduced competition, and potential geopolitical leverage. The United States, in particular, has signaled growing unease. The Office of the US Trade Representative (USTR) is currently evaluating a set of proposed fees, tariffs and restrictions aimed at Chinese carriers, ships, and services. While intended to challenge China’s dominance, such measures could come at a cost—primarily to US importers, who are already facing higher transportation expenses and increased delays now that the second Trump Administration has hit China with astronomical tariffs. This development risks becoming a flashpoint in a broader trade conflict, with implications that extend far beyond traditional tariffs on goods. These concerns are already proving themselves true as of April 2025. How did this start? The investigation into maritime services was launched in April 2024, following a petition from US labor unions that accused China of systematically undercutting global competitors through state subsidies and industrial policy. It remains to be seen how China’s shipping industry will be affected in the long run as the country seeks new trade routes to bypass the US.