China's government strongly criticized the Biden administration's decision to initiate an in-depth investigation of its maritime, logistics, and shipbuilding industry, dismissing it as a misguided move driven by domestic political considerations. 

China has stated that it "firmly opposes" the United States' inquiry into its maritime, logistics, and shipbuilding industries, calling the measure a "mistake on top of another mistake." 

China Reacts to US Investigation of Its Shipbuilding Industry

In an official statement late Wednesday, China's Ministry of Commerce said the United States provides hundreds of billions of dollars in "discriminatory" subsidies to its domestic businesses while accusing China of engaging in so-called 'non-market behaviors.'"

On Wednesday, the US Trade Representative launched an investigation into China's maritime, logistics, and shipbuilding industries, claiming that Beijing employed "unfair, non-market policies and practices" to dominate these sectors, according to Bloomberg.

Section 301 of the Trade Act of 1974 seeks to combat unfair foreign government practices that affect US business.

China urged the United States to "respect multilateral rules" and promised to "take all necessary steps to resolutely defend its rights and interests."

The investigation comes after five national labor groups petitioned the United States on March 12 to investigate China's maritime, logistics, and shipbuilding laws and practices.

READ NEXT: Brazilian Woman Wheels Her Dead Uncle Into the Bank to Withdraw Loan in His Name

US Plans to Lift Tariff on Chinese Steel and Aluminum Imports

US Trade Representative Ambassador Katherine Tai has promised to conduct a "full and thorough investigation into the unions' concerns."

President Joe Biden has also urged the USTR to quadruple tariffs on Chinese steel and aluminum imports to preserve American industry.

Deborah Elms, head of trade policy at the Asia-based Hinrich Foundation, believes the Section 301 probe may be more significant than Biden's request for tariff increases on Chinese steel and aluminum imports.

Elms told CNBC's "Capital Connection" on Thursday that China's overall steel imports into the United States are less than 1%.

She stated that the initiation of a Section 301 probe into shipbuilding "is becoming more of an issue potentially."

READ MORE: US Plans to Lift Tariff Exceptions to Dominant Chinese Solar Panel Imports as Biden Accuses Beijing of 'Cheating' on Its Steel Trade Practices