【By Observer Net, Qi Qian】According to Reuters and South Korean media inews24, on July 11 local time, Zhang Chengji, Director of the Trade Policy Bureau of the South Korean Ministry of Industry, Trade and Energy, stated that the Trump administration hopes South Korea will join the United States to curb China in areas such as shipbuilding.

The report said that on that day, members of the South Korean National Assembly held an emergency consultation meeting on U.S.-South Korea trade negotiations.

"The United States hopes to resolve trade, diplomatic, and security issues at once," Zhang Chengji analyzed, adding that the South Korean government's foreign affairs and security departments should work together with the trade department to find a balance point for the South Korea-U.S. tariff negotiations.

President Trump recently announced new tariffs on multiple countries, with Japan and South Korea each facing a 25% tariff. Trump also signed an executive order extending the effective date of the so-called "reciprocal tariffs" to August 1, instead of the original July 9.

According to Zhang Chengji, the U.S. has put forward a series of demands to South Korea, including increasing investment in American manufacturing, purchasing more energy and agricultural products from the United States. He also mentioned that the Trump administration hopes South Korea will jointly curb China's shipbuilding industry.

"The United States feels a sense of crisis about China's growing market share in the shipbuilding industry and views South Korea as a strategic partner," he said. The United States also requires South Korea to join measures to curb China in other fields as a "precondition" for bilateral cooperation in the shipbuilding industry, but did not specify details. He later clarified that his meaning was that the United States sees the shipbuilding industry as a potential area for joint efforts with South Korea to counter China.

On July 11, Foreign Ministry Spokesperson Mao Ning responded to related questions, emphasizing that China has always supported all parties to properly handle trade and economic relations through dialogue and consultation, but any agreement or negotiation should not harm the interests of third parties.

Zhang Chengji (second from left) speaking at the meeting, South Korean media

Earlier, Hong Kong's South China Morning Post cited data stating that Chinese companies manufacture over 80% of dry bulk ships globally. According to the U.S. government's estimate, as of January 2024, Chinese-owned vessels accounted for more than 19% of the global commercial fleet and controlled 95% of container shipping.

After the Trump administration came into power, it sought to enhance shipbuilding capabilities and revitalize the U.S. shipbuilding industry to counter China's dominant position in the shipbuilding sector.

On March 4, Trump declared in Congress that he would "revive the U.S. shipbuilding industry," saying "this industry should return to the United States." He planned to establish a shipbuilding office in the White House and provide special tax incentives. In late February, the Office of the U.S. Trade Representative came up with a "trick," announcing plans to impose a maximum fee of $1.5 million on Chinese-built ships entering U.S. ports.

The Office of the U.S. Trade Representative published a Federal Register on April 17, stating that all ships built by China and owned by China, if they dock at U.S. ports, will be charged fees based on the number of goods they carry.

In 2025, China's share of the total annual production of global shipyards reached 53.1%, according to U.S. media CNBC's chart.

This U.S. plan caused a stir throughout the shipping industry and broader supply chain participants. According to reports, over 300 trade groups and other stakeholders warned the government that the U.S. could not win this economic war, but instead would put American companies using Chinese ships in a difficult situation. The escalating trade tariffs by the Trump administration have already raised concerns among consumers about price increases and made American exporters vulnerable to retaliation from other countries.

Additionlly, according to a report by NBC, the World Shipping Council, representing the international long-haul shipping industry, stated that it is expected that 98% of ships worldwide will be charged when docking at U.S. ports, because the fee applies to existing Chinese-built ships as well as future ships, and any carrier that has ordered at least one Chinese-built ship. Currently, 90% of ships worldwide are subject to this fee.

According to Yonhap News Agency, on June 6, the U.S. Trade Representative's Office received a submission from the South Korean Ministry of Industry, Trade and Energy and the Ministry of Oceans and Fisheries on April 4, requesting the U.S. to exclude South Korea from the list of foreign cargo ship port fees.

Since the Biden administration, the U.S. has been committed to uniting Japan and South Korea to jointly address so-called "China and Russia threats" on military, supply chain, and other issues. In 2023 and 2024, the U.S., Japan, and South Korea held two consecutive Camp David summits, targeting China.

According to the Asia Daily, in November last year, after Trump's victory, he had a 12-minute phone call with then-South Korean President Yoon Suk-yeol. During the call, Trump mentioned, "The U.S. shipbuilding industry needs help and cooperation from South Korea." Although he did not directly mention China, the South Korean industry at the time generally believed that Trump's move aimed to curb China's rapid rise in the global shipbuilding industry.

However, after Trump took office, he advocated for "America First" and waved the tariff stick indiscriminately against the world, including Japan and South Korea.

In March, China, Japan, and South Korea restarted their ministerial meeting on economic and trade affairs in Seoul after five years, pledging to deepen economic and trade cooperation. Media outlets such as the South China Morning Post and Bloomberg cited analyses at the time, indicating that the three countries' growing willingness to strengthen relations was evident in the face of U.S. tariff pressures, and that more progress in economic and trade cooperation between the three countries is expected in the future.

On July 3 local time, South Korean President Lee Jae-myung held a press conference one month after taking office, stating that he would quickly improve relations with China and South Korea. Lee Jae-myung said, "We will base our solid South Korea-U.S. alliance, deepen the trilateral cooperation between South Korea, the U.S., and Japan, and actively promote the quick improvement of relations with China and Russia, and conduct 'practical diplomacy' centered on national interests, truly safeguarding peace and people's lives."

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