China slams U.S. probe into its shipbuilding industry, says move is a ‘mistake on top of a mistake’

China said it “firmly opposes” the U.S. investigation into its maritime, logistics and shipbuilding industries, calling the move a “mistake on top of a mistake.”

In an official statement late Wednesday, China’s ministry of commerce said the U.S. provides hundreds of billions of dollars in “discriminatory” subsidies to its domestic industries, “yet accuses China of adopting so-called ‘non-market practices.’”

“In fact, the development of China’s industries is the result of companies’ technological innovation and active participation in market competition,” the Chinese ministry said.

On Wednesday, the Office of the U.S. Trade Representative initiated a probe into China’s maritime, logistics and shipbuilding industries, alleging that Beijing used “unfair, non-market policies and practices” to dominate these sectors. Under the Trade Act of 1974, Section 301 seeks to address unfair foreign government practices impacting U.S. commerce.

“By launching a new Section 301 investigation, the U.S. is making a mistake on top of a mistake,” the China’s commerce ministry said.

Beijing called on the U.S. to “respect multilateral rules” and vowed to “take all necessary steps to resolutely defend its rights and interests.”