Logistics as a weapon: Beijing responds to US maritime tariffs with special taxes and port blockade powers

A geo-economic intelligence analysis of maritime retaliation between China and the United States

The geoeconomic conflict between the People's Republic of China (PRC) and the United States has found its latest and most volatile battleground in the critical sector of maritime transport and logistics. In response to the escalation of punitive tariffs and restrictions imposed by the US administration, the People's Republic of China swiftly adopted a specific and devastating regulatory framework for retaliation, formalized on September 28 with Decree No. 817 of the State Council. This new rule, which falls within the economic coercion tactics typical of a predatory strategy, grants Beijing the legal authority to impose not just special fees on hostile carriers but also the total blockade or restriction of vessel entry/exit from its ports. Adopting such a powerful instrument transforms China's logistics network into a foreign policy weapon, threatening global supply chain stability and introducing an unprecedented level of operational risk to the maritime industry.

This threat is amplified by China's logistics dominance: seven of the world's ten busiest container ports, measured by TEU (Twenty-foot Equivalent Unit) volume, are located in China, with Shanghai ranked first. In 2024, the top 10 Chinese ports recorded overall growth of 7.1% compared to the previous year, with cumulative traffic of 239.1 million TEUs in 2024. This concentration of logistical volume is what makes the retaliation authorized by Article 48—the power to prohibit or restrict vessel movement—an extremely potent mechanism of economic coercion, capable of paralyzing global logistics.

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The Chinese Regulatory Framework and Enhanced Control (Order 817)

Beijing's legal countermeasure is formalized in the Order of the State Council of the People's Republic of China, Number 817.

• Provision Name: Decision of the State Council on Amending the Regulation of the People's Republic of China on International Maritime Transport (国务院决定对《中华人民共和国国际海运条例》作如下修改).

• Issuing Body: State Council of the People's Republic of China (中华人民共和国中央人民政府).

• Effective Date: Adopted on September 12, 2025, it was promulgated and entered into force on September 28, 2025.

Analysis of Retaliatory Countermeasures (Article 48)

The strategic core of the revision lies in Article 48 (formerly Article 46), which provides the legal basis for retaliation. This article authorizes the Chinese Government to adopt Necessary Countermeasures (必要的反制措施) against any country or region that adopts discriminatory measures (歧视性的禁止、限制或者其他类似措施) against Chinese operators, vessels, or crew.

The authorized retaliatory actions, which represent a clear threat of economic coercion, include:

• Fiscal Penalization: Imposing Special Fees (收取特别费用) on vessels from that hostile country or region calling at Chinese ports.

• Operational Restrictions (The Blockade): Prohibiting or Restricting (禁止或者限制) the entry or exit of such vessels from PRC ports.

• Information Control: Prohibiting or Restricting organizations and individuals from that hostile country or region from obtaining data and information (相关数据、信息) related to Chinese international maritime transport.

Strengthening Infrastructure and Digital Control (Articles 2 and 22)

The regulatory revision expands Chinese oversight over a crucial sector for commercial intelligence and logistics security:

• Expansion of Auxiliary Activities: Article 2 (paragraph 2) is revised to explicitly include international shipping exchange platform services (国际航运交易平台服务) among the auxiliary activities subject to the Regulation.

• Data Reporting Obligation (Article 22): The new Article 22 mandates a strict reporting obligation for operators of these digital platforms to the Ministry of Transport of the State Council (国务院交通运输主管部门). The required information, crucial for logistics control, includes:

  • Operator Name (经营者名称).

  • Place of Registration (注册地).

  • Contact Methods (联系方式).

  • Platform Service Agreements (平台服务协议).

  • Shipping Exchange Rules (航运交易规则).

Non-compliance with this obligation (Article 39) is punishable by fines between 20,000 and 100,000 Yuan and, in severe cases, by an order to cease related operations.

The Precedent: US Tariffs on Chinese Carriers (USTR Section 301)

The Chinese countermeasures are a direct response to the tariff action initiated by the Office of the United States Trade Representative (USTR) on April 17, 2025, following an investigation under Section 301 of the US Trade Act of 1974. The action was prompted by the determination that China's efforts to dominate the maritime and shipbuilding sectors restrict or burden US commerce.

The US measures take the form of a port entry fee, phased in starting October 14, 2025.

Structure and US Tariff Mechanisms

Subject to Fee	USTR Detail and Annex	Tariff Mechanism
Chinese Operators/Owners (Annex I)	Applies to Chinese vessel operators or operators of vessels owned by "Chinese vessel owners" (broadly defined to include entities controlled by the PRC, Hong Kong, or Macau).	Based on the vessel's Net Tonnage. Rises from $50/net ton (Oct 14, 2025) up to $140/net ton by April 2028.
Chinese-Built Vessels (Annex II)	Applies to operators of vessels built in China, regardless of ownership.	Calculated as the higher of: Net Tonnage (up to $33/net ton) or Containers Discharged (up to $250/container) by April 2028.

The USTR also proposed duties up to 100% on Ship-to-Shore (STS) cranes and cargo-handling equipment linked to China. This move is motivated by security concerns that over-reliance on Chinese production may create opportunities for manipulation of critical US maritime infrastructure.

Geoeconomic Comparison and Outlook

Parameter	Chinese Countermeasures (Order 817)	US Tariffs (USTR Section 301)
Nature of Provision	Framework for Active Retaliation (Threat of Coercive Sanctions)	Passive Port Service Fees and Tariffs
Main Objective	Deterrence, Economic Coercion, and Digital Data Control	Penalization of Operating Costs, Reduction of Chinese Shipbuilding Dominance
Most Drastic Mechanism	Direct Port Restrictions (Prohibition of Entry/Exit)	Tonnage Fees (Cost Multiplier) and Container Fees
Additional Regulatory Focus	Extension of Control to Exchange Platforms and Data (Arts. 2, 22)	Tariffs on Port Equipment (STS Cranes)

Implications for Global Operators

The escalation between the two powers introduces two levels of risk critical:

1. Catastrophic Operational Risk: The threat of a port blockade by China, authorized by Order 817, is the most destabilizing element. Disrupting operations at key Chinese hubs, which handle the majority of global traffic, in response to perceived discrimination, could paralyze global supply chains.

2. Digital Sovereignty and Compliance: China is using the dispute to justify strengthening its sovereignty over logistics data. The reporting obligation for exchange platforms ensures the Chinese Government a constant flow of sensitive information, offering a strategic advantage in commercial intelligence and economic targeting.

In conclusion, the maritime sector is now the focal point of geoeconomic fragmentation. The decisions by Beijing and Washington impose unavoidable costs (tariffs) and an unprecedented degree of strategic uncertainty on global operators, effectively turning ports and data flows into instruments of foreign policy and coercion.