Why Trump is going full steam ahead to keep China’s shipbuilding in dry dock

US policies to curb China’s perceived influence on global shipping and shipbuilding are facing pushback – but Trump seems unlikely to let up

From the ever-evolving saga of the Panama Canal to new fees for Chinese-linked ships entering American ports – a move maritime industry insiders have called “disruptive” and “self-defeating” – the question for most in the shipping sector is why US President Donald Trump appears so intent on displacing China from it.

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Here, we attempt to provide an answer by examining China’s role in global shipping, estimating the effects of Trump’s actions on the trade of major commodities and determining the feasibility of supplanting China-built vessels with alternatives from the US and its allies.

What is the status of the Panama Canal deal?
Trump claimed in his inaugural address on January 20 that “China is operating the Panama Canal”, primarily referring to facilities under the administration of the Hong Kong-based company Hutchison Ports since 1997.