Dusty Johnson
05/23/2024 | Press release | Distributed by Public on 05/23/2024 08:54
Johnson Anti-CCP Provision Included in Annual Defense Bill
Washington, D.C. - The House Armed Services Committee passed the annual defense bill with U.S. Representative Dusty Johnson's (R-S.D.) provision from his Ocean Shipping Reform Implementation Actto crack down on China, protect global supply chains, and increase fairness in the markets.
"We've seen the positive results of my Ocean Shipping Reform Act that became law in 2022, but there is more to be done to secure our supply chains from China," said Johnson. "My provision requires an independent study and report into the business practices of the Shanghai Shipping Exchange. This study will give us vital information on how to better protect U.S. shippers and manufacturers from the CCP's unfair business practices."
Johnson's provision is included in Sec. 3521of the Subcommittee on Seapower and Projection Forces bill. This provision was originally included in Johnson's Ocean Shipping Reform Implementation Act, which passed the House in March 2024 and awaits action in the Senate.
This is a part of his larger effortto protect U.S. ports, shippers, and manufacturers from the Chinese Communist Party's (CCP) influence. In February, Rep. Johnson led a coalition of Members urging the Federal Maritime Commission to counter CCP dominance in global shipping exchanges. Last year, Rep. Johnson secured a provision in the National Defense Authorization Act (NDAA) to prohibit the use of the CCP state-controlled shipping platform LOGINK at U.S. ports.
Background:
The Shanghai Shipping Exchange (SSE) is the more widely known Chinese shipping exchange. A "shipping exchange" is a platform that connects shippers with carriers to make agreements or contracts for transporting cargo.
Founded in 1996, the SSE is operated by the Ministry of Transport and the Shanghai Municipal People's Government. The SSE is tasked by the Chinese government with regulating China's shipping market, maintaining transaction order, and driving the development of China's shipping market.
At times, the Chinese government has used the SSE to promote Chinese shipping interests above the interests in the market. During the COVID-19 pandemic, there were reports that the Ministry of Transport refused to allow carriers to increase rates from China to the U.S., to support Chinese exporters, and go against market trends.Further, there are concerns within the business community that the Shanghai Shipping Exchange provides confidential order flow information to domestic Chinese producers, giving them a competitive advantage over other foreign producers.