Johnson Provisions Pass the House in Annual Defense Bill
Washington, D.C. – Today, U.S. Representative Dusty Johnson (R-S.D.) voted in favor of the annual defense bill (NDAA) when it passed the House. The legislation includes two policies authored by Johnson – a provision from his Ocean Shipping Reform Implementation Act to protect global supply chains from China’s malign influence and increase fairness in the markets, and an amendment to better understand the People’s Republic of China’s (PRC) monopoly of shipping container production.
“Countering China is a crucial aspect of improving our national defense and so is strengthening our supply chains,” said Johnson. “The NDAA is a strong bill that prioritizes our troops and strengthens our national security. I’m glad my provisions were included.”
Johnson’s provision to increase fairness in global shipping markets is included in Sec. 3521 of the 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. Further, Johnson’s amendment (No. 346) was adopted unanimously by the House and would require Congress to better understand the production and acquisition of shipping containers from foreign adversaries.
This is a part of his larger effort to 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 on Johnson’s Provisions:
Section 3521: 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, reports showed the Ministry of Transport refused to allow carriers to increase rates from China to the U.S. which supported Chinese exporters and continued to go against market trends. Further, there are concerns within the business community that the SSE provides confidential order flow information to domestic Chinese producers, giving them a competitive advantage over other foreign producers.
Amendment No. 346: U.S. companies and the federal government rely on shipping containers to transport goods across the world. The COVID-19 pandemic alerted consumers and government to the use and availability of shipping containers.
Federal Maritime Commissioner Carl Bentzel conducted a study on the PRC’s control of container manufacturing, and found that of the 44.2 million maritime container global inventory, over 95 percent are manufactured in China. In fact, Commissioner Bentzel stated, “when demand for ocean containers increased, Chinese-based intermodal equipment manufacturers were notably slow in ramping up production, raising the question of whether this was part of a deliberate strategy to manipulate prices.”
The United States should not solely rely on foreign adversaries for containers, which are not only used to ship consumer goods, but also sensitive defense systems. Congress should better understand our country’s reliance on foreign adversaries, like the PRC, for production and acquisition of shipping containers in order to make effective policy decisions to better secure supply chains from China.
The FY25 NDAA:
- Improves Servicemember Quality of Life:
- Boosts compensation
- Improves housing
- Ensures access to medical care
- Enhances support for military spouses
- Increases access to childcare
- Restores American Deterrence
- Deters China
- Restores Lethality
- Defends Israel
- Secures America’s southern border
- Increases oversight and accountability
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