China's warning to US over port fees move: ‘Stop wrongful practices’

China on Friday hit out at the United States over the Donald Trump administration's plan to impose massive fees on China-linked ship visits to American ports, calling it “detrimental to all parties”.

“They drive up global shipping costs (and) disrupt the stability of global production and supply chains. They will not succeed in revitalising the US shipbuilding industry,” foreign ministry spokesperson Lin Jian said.

The Chinese foreign ministry said," Urge the United States to respect facts and multilateral rules and immediately stop wrongful practices.”

ALSO READ: Tariffs up to 245% on China: Trump's latest salvo in ongoing trade war

“China will take necessary measures to defend lawful rights and interests,” Reuters quoted the statement as saying.

Earlier, the Donald Trump administration said it was taking steps to impose levies on Chinese vessels docking at US ports, threatening to shake up global shipping routes and escalate the trade war between the world’s two biggest economies.

All Chinese ships docking in US to pay fees

According to a Bloomberg report, under a plan put forward by the US Trade Representative on Thursday, all Chinese-built and -owned ships docking in the US would be subject to a fee based on the volume of goods carried.

The proposal follows a months-long investigation ordered by the previous Joe Biden administration into whether Chinese shipbuilding threatens US national security.

Later, the Federal Register notice posted by the U.S. Trade Representative was watered down from a February proposal for fees on China-built ships of up to $1.5 million per port call that sent a chill through the global shipping industry, Reuters reported.

“Ships and shipping are vital to American economic security and the free flow of commerce. The Trump administration's actions will begin to reverse Chinese dominance, address threats to the U.S. supply chain, and send a demand signal for U.S.-built ships,” US Trade Representative Jamieson Greer said in a statement.

Still, the fees on Chinese-built ships add another irritant to swiftly rising trade tensions between the world's two largest economies.

Amid the ongoing trade war, Trump said early Friday that the United States was in talks with China on tariffs, adding that he was confident the world's largest economies could make a deal to end a bitter trade war.

“Yeah, we're talking to China. I would say they have reached out a number of times,” AFP quoted the US President as saying.

(With agencies inputs)