WASHINGTON, March 6 (Reuters) - U.S. President Donald

Trump on Thursday said French-based shipping firm CMA CGM would

invest $20 billion in the United States to build out shipping

logistics and terminals.

The Trump administration wants to revive shipbuilding in the

United States and weaken China's grip on the sector. The

president's team is preparing an executive order that would

impose a levy on ships linked to China when they call at U.S.

ports, and wants U.S. allies to do the same.

CMA CGM is the world's third-largest container shipping line

and is part of a vessel-sharing alliance with companies

including China's COSCO. CMA CGM said last week that U.S. port

fees on China-built ships would have a big impact on all

shipping firms.

Trump said on Thursday he would announce a new program for

building ships in the United States next week or the following

week, including incentives.

CMA CGM CEO Rodolphe Saade, who joined Trump in the Oval

Office, confirmed the $20 billion investment and said it would

create 10,000 jobs.

The $20 billion investment over four years would include

expansion of container ports and the creation of an air cargo

hub in Chicago supported by five new Boeing 777

freighters flown by American pilots, CMA CGM said in a

statement.

Saade, a French-Lebanese billionaire who controls CMA CGM

with other family members, told Trump at the White House that

his group was looking at supporting the building of container

ships and would make an announcement "in the coming weeks".

The company also plans to raise the number of its vessels

flying the U.S. flag to 30 from 10 currently, he added. Trump's

administration wants to increase the number of vessels on the

U.S. flag registry.

CMA CGM operates port terminals in New York and Los Angeles.

The Marseille-based firm is the biggest cargo carrier for U.S.

retail giant Walmart ( WMT ).