Law firm WFW on USTR 301 and retaliatory measures in China

International law firm Watson Farley & Williams (WFW) on Wednesday (15 October) shared on the Chinese Ministry of Transport imposing “countermeasures” against the USTR’s port fees implemented under section 301 of the US Trade Act 1974. 

While there is significant ongoing uncertainty, the law firm’s Hong Kong, Athens, London and New York teams have been considering the practical impact of the Chinese port fees and what mitigation strategies might exist for its clients:

USTR 301 notice of action against the Chinese maritime sector

The background to these measures stems from a petition brought by five labour unions in the US who complained of unfair practices by China in the maritime sector which they believed posed a discriminatory threat to US commerce. The investigation was initiated under section 301 of the US Trade Act 1974, and as a result the US imposed special port fees on Chinese-built, -owned or -operated ships (subject to certain narrow exceptions). Ownership includes a situation where 25% or more of the entity’s equity is held by the Chinese government, Chinese companies or individuals.

The measures came into force on 14 October 2025. In some ways this is old news. However, the notice of action has kept the industry busy since its announcement in April 2025 as parties come to grips with what it means to be a Chinese owner or operator.

Given that “China” includes Hong Kong SAR, and Macau SAR as well as mainland China, we have been busy across our network assisting our clients to consider their corporate structures, financing and flagging needs and to implement restructuring plans where necessary.

SeaTrade Maritime (1 October 2025) has estimated that the additional cost to the top ten carriers’ fleets would be in the region of US$3.2bn in US special port fees.

Chinese Ministry of Transport Announcement

Given the clear targeting of the Chinese maritime industry, on 28 September 2025 the PRC government laid the groundwork for retaliatory measures to be adopted by amending the regulations on international maritime transport.

On 10 October 2025 retaliatory measures were announced by the Ministry of Transport (MOT Announcement). The measures came into force on 14 October 2025 and closely mirror the USTR measures.

Essentially US vessels will now incur special port fees if they call at Chinese ports. The targeted ships are:

• ships owned by US businesses, organisations and individuals;
• ships operated by US corporations, organisations and individuals;
• ships owned or operated by enterprises, other organisations in which US enterprises, organisations, and individuals directly or indirectly hold 25% or more of the equity, voting rights or board seats;
• ships flying US flag; and
• ships built in the US.

The initial fees are set at RMB400 (approx. US$56) per net tonne and increase over time.

Recent Developments

Just after midnight on 14 October 2025 the MOT issued the implementing regulations, which made some important clarifications to the MOT Announcement.

Just after midnight on 14 October 2025 the MOT issued the implementing regulations, which made some important clarifications to the MOT Announcement.

Exceptions: there are two important exceptions to the measures: the special port fees will not apply to (1) Chinese built ships; (2) ships arriving unladen for repairs.

Ship arrival form: the form that needs to be completed by every ship on arrival was issued. This form brings some further clarity, in particular as it is the only official document produced in both English and Chinese regarding the MOT Announcement. Parties should consider that the English language version of this document will prevail over any unofficial translations from Chinese of the MOT Announcement or implementing rules.

Note: The full article by WFW can be found here. 

Photo credit: Venti Views on Unsplash
Published: 22 October, 2025