China imposes retaliatory port fees on American-owned ships calling in the country

China has hit US-owned ships docking in the country with reciprocal port fees, in retaliation for port fees the US government plans to impose on Chinese vessels, expanding a series of retaliatory measures ahead of trade talks between US President Donald Trump and Chinese leader Xi Jinping.

China’s Ministry of Transportation said on Friday that ships owned or operated by American companies or individuals, and ships built in the United States or flying the American flag, will be subject to a fee of 400 yuan ($56) per net ton per voyage if they dock in China.

The ministry said the fee will be applied to the same vessel for a maximum of five voyages each year, and will rise every year until 2028, when it will rise to 1,120 yuan ($157) per net ton. These sanctions will take effect on October 14, the same day the United States is scheduled to begin imposing port fees on Chinese ships.

On Friday, the Chinese Ministry of Transport said in a statement that the special fees it imposes on US ships are “countermeasures” in response to “wrong” US practices, in reference to US port fees imposed on Chinese ships.

The ministry also criticized US port fees as “discriminatory” that would “severely harm the legitimate interests of the Chinese shipping industry” and “seriously undermine” the international economic and trade system.

China announced a series of trade measures and restrictions ahead of an expected meeting between Trump and Xi on the sidelines of the Asia-Pacific Economic Cooperation Forum in South Korea, which begins at the end of October. On Thursday, Beijing unveiled new restrictions on exports of rare earths and related technologies, as well as new restrictions on the export of certain lithium batteries and related production equipment.

The port fees announced by Beijing on Friday mirror many aspects of US port fees on Chinese ships calling at US ports. Under Washington’s plans, Chinese-owned or operated ships would be charged a fee of $50 per net ton for each voyage to the United States, which would then rise by $30 per net ton annually until 2028. Each ship would not be charged more than five times a year.

China’s new port fees are “not just a symbolic move,” said Kun Cao, executive vice president of consultancy Riedal. “It explicitly targets any ship with meaningful ties to the United States — ownership, operation, flag or construction — and is sharply proportional to ship size.”

“The real sting is on U.S.-owned and operated ships,” he said, adding that North America accounts for roughly 5% of the global fleet by beneficial ownership, a number that is still significant although not huge compared to Greek, Chinese and Japanese shipowners.

Rydall added that the United States has only about 0.1% of the global market share for commercial shipbuilding in recent years, and it built fewer than 10 commercial ships last year.

While shipping analysts have said U.S. port duties on Chinese ships are likely to have a limited impact on trade and freight rates as some shipping companies redeploy their fleets to avoid additional charges, shipping data firm Alphaliner warned last month in a report that U.S. port duties could still cost as much as $3.2 billion next year for the world’s 10 largest airlines.

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This story has been corrected to show that the Alphaliner report was from last month, not this month.