Federal investigators are looking into whether major Chinese container manufacturers intentionally slowed down global shipping container production just before the COVID-19 pandemic, according to a report from CBS News....
Federal investigators are looking into whether major Chinese container manufacturers intentionally slowed down global shipping container production just before the COVID-19 pandemic, according to a report from CBS News. This issue could raise fresh concerns about China's influence over important maritime supply chains.
Sources familiar with the investigation told CBS News that U.S. authorities are examining whether several Chinese companies, which together account for most of the world's dry shipping container production, colluded in late 2019 to reduce output by cutting worker hours and slowing down factory processes.
Investigators believe this slowdown in production may have led to a tighter global supply and significantly increased container prices during the supply chain crisis caused by the pandemic.
Update: U.S. Alleges Chinese Shipping Container Firms Manipulated Global Supply During COVID Crisis
According to CBS, the Department of Justice is expected to unveil indictments related to this investigation. Several Chinese executives have reportedly been indicted, and one has been detained in France, awaiting extradition to the U.S.
The allegations highlight a serious vulnerability in the maritime supply chain that became evident during the pandemic, when container shortages led to severe port congestion, skyrocketing freight rates, and major disruptions in global trade.
China dominates the global container manufacturing sector, holding over 90% of the world's supply. During the shipping boom related to the pandemic, container prices more than doubled as shipping companies struggled to find equipment. Bloomberg reported in 2021 that manufacturers were caught by surprise by a sudden surge in demand, as they had anticipated a drop in global trade in the early months of COVID-19.
This investigation comes at a time when there is increasing scrutiny in Washington regarding China's overall control of maritime infrastructure.
In January 2025, the Office of the U.S. Trade Representative concluded that China's practices in maritime and shipbuilding are "unreasonable" under Section 301 of the Trade Act, citing Beijing's state-supported dominance in shipbuilding, logistics, port equipment, intermodal chassis, and shipping containers.
The USTR also warned that China controls about 95% of global shipping container production, which poses risks to both U.S. economic and national security.
The timing of this investigation is noteworthy. CBS reported that the Trump administration aimed to keep the case under wraps until after a recent summit with President Trump in Beijing.
This case could further strengthen bipartisan calls in Washington to boost domestic maritime manufacturing and reduce dependence on Chinese-controlled shipping infrastructure, especially as geopolitical competition escalates.
Update: U.S. Alleges Chinese Shipping Container Giants Manipulated Global Supply During COVID Crisis