Beijing, China - Officials in Beijing have opposed a proposal which would slap port entry fees on all Chinese vessels entering the US and have taken the issue to the World Trade Organization (WTO).

The China Shipowners' Association (CSA) opposed the US proposal on the basis that it violates international rules and even some domestic laws in the US, Reuters reported.

A draft executive order obtained by the outlet and released on March 6 indicates President Donald Trump intends to impose a fee on Chinese ships entering US ports and then redirect that money towards rebuilding domestic shipping infrastructure.

Trump's expected decision follows a year-long investigation by the US Trade Representative (USTR), which found that China used suppressed labor costs, forced technology transfer, and intellectual property theft to maintain its market dominance in shipping.

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"USTR proposes to impose certain fees and restrictions on international maritime transport services related to Chinese ship operators and Chinese-built ships, as well as to promote the transport of U.S. goods on U.S. vessels," the USTR proposed in February.

CSA and its members – including Chinese shipping juggernaut COSCO – are likely to be hit hard by such a policy, especially in addition to Trump's tariff regime, which rose from 10% to 20% over the last few weeks.

The CSA called the USTR's proposal "discriminatory" and claimed that it violated WTO rules, indicating they are seeking to raise a formal dispute with the organization.

China raised a complaint with the WTO over Trump's trade war earlier this year, alleging that the US was acting unlawfully and violating rules set by the organization.

According to the CSA, the USTR is also promoting a policy which would violate the 2003 Sino-US Marine Agreement, infringe on the jurisdiction of the Federal Maritime Commission, and violate a number of other international agreements.

"The move not only hikes global maritime shipping costs and disrupts the stability of global industrial and supply chains, but also increases inflationary pressures in the U.S. and hurts the interests of American consumers and businesses," Chinese foreign ministry spokesperson Mao Ning said last week.

"The practice will ultimately fail to revitalize the U.S. shipbuilding industry," she continued. "We urge the U.S. to respect facts and multilateral rules, and immediately stop its wrongdoings. China will take necessary measures to defend its lawful rights and interests."