China's Countermeasures in Shipping Industry Spark European Firms' Response
China's countermeasures against U.S. ownership in shipping companies are causing ripples in the industry, with European firms rushing to limit their exposure. While the U.S. imposes fees on Chinese vessels, China targets companies with significant U.S. ownership, impacting European firms with US-linked stakes above 25%.
President Trump has threatened further tariffs on China but reassured on social media that 'Don't worry about China, it will all be fine!'. Meanwhile, he and Chinese leader Xi Jinping are set to meet in South Korea on Oct. 29 to discuss their trade war. The U.S. fees, at $50 per net ton, cap at five services a year, totaling $5.6 million for a 35,000-ton vehicle carrier. However, Chinese fees, starting at 400 yuan ($56.22) per net ton and rising to 1,120 yuan in 2028, could be much steeper for larger bulk carriers.
European companies are swiftly responding. While the U.S. measure may have limited impact, Chinese retaliation, with its broader definition of U.S. ownership, could be more painful. Firms are reshuffling boards and auditing shareholder bases to minimize exposure.
The U.S. and China are imposing fees on each other's vessels, with Europe potentially caught in the middle. The upcoming Trump-Xi meeting could provide clarity on the trade war's impact on the shipping industry. European companies are acting swiftly to mitigate risks, but the full extent of Chinese retaliation remains to be seen.
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