The Office of the United States Trade Representative (USTR) plans to charge Chinese-made ships to enter U.S. ports. Due to the news, Yangzijiang Shipbuilding, a component of the Straits Times index, has been under selling pressure for two days.

After the share price of Yangtze River Ship Industry fell 7.1% on Monday (February 24), before the stock market closed at noon Tuesday (25th), the company's share price fell another 9.03% or 0.27 yuan to 2.72 yuan, with a total of 6,325 shares reselling.

In addition to the unexpected impact of the stock price of Yangzijiang Entrepreneurship, other Chinese shipbuilding stocks have also fallen one after another. Shares of Hong Kong-listed COSCO Shipping and Orient Overseas International fell 4.6% and 3% respectively on Monday.

The Office of the U.S. Trade Representative announced its proposed charges and restrictions on Chinese ships last Friday (21st). This includes paying up to US$1 million (about S$1.34 million) to each ship owned by Chinese maritime transport operators when entering a U.S. port, or charging US$1,000 per metric ton based on the ship's net load.

In addition, non-Chinese shipping operators operating ships made in China will have to pay up to US$1.5 million each time they enter the port. However, operators with more than 50% of Chinese-made ships in the fleet will not be distinguished from their origin. Pay a $1 million fee.

Further reading

Three subsidiaries were claimed by Yangzijiang Shipbuilding Industry's stock price once plummeted by 8%

Three subsidiaries were claimed by Yangzijiang Shipbuilding Industry's stock price once plummeted by 8%

Yangzijiang won a contract of 3.5 billion yuan and rose 11% in the early trading

Yangzijiang won a contract of 3.5 billion yuan and rose 11% in the early trading

Other recommended restrictions include limiting certain U.S. exports must be shipped by U.S. registered ships or ships made in U.S.

The U.S. Trade Representative's report in January said China's tonnage in the global shipbuilding industry had increased from 5% in 1999 to 50% in 2023. In contrast, the number of shipbuildings in US shipyards has dropped sharply from 70 in 1975 to five per year.

Yangzijiang Shipbuilding Industry is China's largest non-state-run shipbuilding company. It has four shipyards in Jiangsu Province, China, which can manufacture oil tankers, bulk carriers, and liquefied natural gas (LNG) ships.