WASHINGTON (Reuters) - U.S. President Donald Trump is expected to sign an executive order potentially on Wednesday aimed at reinvigorating U.S. shipbuilding and reducing China's grip on the global shipping industry, three sources familiar with the matter said.

Republican and Democratic U.S. lawmakers for years have warned about China's growing dominance on the seas and diminishing U.S. naval readiness.

Among the proposals, the U.S. is planning to charge fees for docking at U.S. ports on any ship that is part of a fleet that includes Chinese-built or Chinese-flagged vessels and will push allies to act similarly or face retaliation, according to the draft text of the executive order seen by Reuters.

Trump could sign the executive order on Wednesday and the final text had been revised, said the sources, who declined to be identified due to the sensitivity of the matter.

The White House declined to comment.

Chinese shipbuilders account for more than 50% of all merchant vessel cargo capacity produced globally each year, up from just 5% in 1999, according to the Center for Strategic and International Studies.

That gain came at the expense of shipbuilders in Japan and South Korea. U.S. shipbuilding peaked in the 1970s and now accounts for a sliver of the industry output.

The U.S. shipbuilding industry has struggled due to high costs and a complex regulatory structure, which has enabled rivals like China to grow rapidly.