TMTPOST--The China Council for the Promotion of International Trade (CCPIT) on Sunday blasted the U.S. Section 301 investigation into China's maritime, logistics and shipbuilding industries, calling it “groundless.” 

The industry association said it will organize industry companies to mount a legal defense to safeguard the legitimate rights and interests of Chinese companies.

China's maritime, logistics and shipbuilding sectors have actively conducted technological innovation and participated in free market competition based on market development needs, which significantly contributed to the development of global trade as well as the smooth and stable operation of global supply chains, a CCPIT spokesperson said in a statement posted on its official WeChat account.

According to related U.S. research, the challenges faced by the U.S. maritime, logistics, and shipbuilding sectors stem primarily from a lack of market competitiveness, and have nothing to do with China's laws, policies, or practices.

The CCPIT and the China Chamber of International Commerce urged the U.S. to uphold market rules and fair competition principles. They called for an immediate halt to misguided actions and a return to the multilateral trade system based on market rules and principles.

A CCPIT spokesperson said that the CCPIT would ask Chinese companies to provide legal defense and participate in U.S. hearings alongside upstream and downstream companies to protect their legitimate rights and interests.

These statements followed the announcement by the U.S. Trade Representative (USTR) office initiating an investigation into China's dominance in the maritime, logistics, and shipbuilding sectors, prompted by a petition from five U.S. national labor unions.

The USTR alleged that China is using "unfair, non-market policies and practices" to dominate those sectors, according to a USTR press release.

In addition to the CCPIT, Chinese authorities have already urged Washington to correct its wrongdoings while stopping the manipulation of issues related to China in the US presidential election year.

"According to the WTO ruling, the former US administration was wrong to impose additional steel and aluminum tariffs on certain WTO members and launch a Section 301 investigation and raise tariffs on China. Instead of correcting its mistake, the US chose to double down on it by threatening new tariff hikes and announcing a new Section 301 investigation," Lin Jian, a Chinese Foreign Ministry spokesperson, said on Friday, urging the U.S. to be prudent in its words and deeds, and stop manipulating issues related to China in the election year.

The Biden administration is reportedly calling for a threefold increase in tariffs on Chinese steel and aluminum, citing the issue of "overcapacity" as justification for targeting Chinese industries.

"Overcapacity" is also a problem related to US competitiveness, and he stressed the importance for the two sides to conduct dialogue including the "overcapacity" issue, based on evidence, said He Weiwen, a senior fellow at the Center for China and Globalization.