Key takeaways
China announces countermeasures to US tariff actions
Businesses trading internationally should monitor escalation risks.
Supply chain resilience becomes a strategic priority
Diversification can reduce exposure to geopolitical tensions.
Further negotiations may influence global trade dynamics
Companies should stay alert to policy shifts and compliance needs.
The tariffs under USTR Article 301 come into effect today, 14 October 2025. China has issued a variety of counter measures in response.
The International Chamber of Shipping (China) Liaison office has produced a report on the general scheme of those measures. The following are some important takeaways from that report:
From flag state to shareholder state: a structural shift
The Special Port Fee regime marks a paradigm shift from traditional concepts of “flag” or “vessel origin” to a “shareholder-based” regulatory logic. According to informed sources familiar with policy discussions, the 25% equity/voting rights threshold is not a symbolic line: it is now a primary basis for determining U.S. linkage.
Recommendations
We share the views of the ICS that shipowners should:
Review shareholding structures, especially for listed entities;
Assess exposure based on beneficial ownership, including indirect holdings and board governance arrangements;
Monitor chartering activities and contractual terms that may trigger risk under the expanded definitions of “operator”;
Begin contingency planning for compliance and documentation, particularly regarding shareholder registers and voting rights disclosures;
Seek legal advice where necessary, especially for group structures involving U.S. investors or publicly listed units.
Whilst implementation measures have now been published by China overnight, we are yet to see the practical impact of such implementation, and in particular, what is meant by “U.S. entities holding 25% of more equity, voting rights or board seats (either directly or indirectly)”. Based on the ICS report, the expectation is that any US listed shipping company will likely be caught, irrespective of its country of incorporation or where operational headquarters may be. Other uncertainties remain, e.g. treatment of nominee structures and custodians.
There is an abundance of non-Chinese shipowners listed in the U.S. The new measures introduced by China will likely have a huge impact on their fleet that calls to Chinese ports. Could this mean that Chinese leasing companies, who have suffered much since the introduction of the USTR Article 301, may be the solution for these U.S. listed shipowners?
If you would like to speak further on the subject, please feel free to contact any one of Damien Laracy, Janice Lee and Jim James from our Hong Kong office.
