China’s shipbuilding industry has rapidly ascended to dominate over half of the global market, significantly threatening U.S. economic and national security by reducing its own market share to 0.1%. The report from CSIS outlines the implications of this shift, urging a revitalization of U.S. shipbuilding capacity to counter strategic risks and ensure military readiness.

In a stark report from the Center for Strategic and International Studies (CSIS), it has been revealed that over the past two decades, China has become a dominant force in shipbuilding, capturing more than half of the global commercial shipbuilding market. In stark contrast, the United States’ market share has dramatically declined to a mere 0.1%. This development poses significant economic and national security threats to the United States and its allies.

Notably, a single Chinese shipbuilder outperformed the entire U.S. shipbuilding industry in 2024 by constructing more commercial vessels by tonnage than the U.S. has managed since World War II. China has also developed the largest naval fleet worldwide, underscoring the urgency of the situation, as detailed in the 75-page report.

The report articulates that the diminishing capabilities of U.S. and allied shipbuilding significantly threaten military readiness and economic opportunities while simultaneously enhancing China’s ambitions for global power projection. Growing concerns about the status of the U.S. shipbuilding industry have risen in the face of increasing competition from China, which stands as the world’s second-largest economy.

In a recent congressional hearing, government officials and lawmakers expressed the need for immediate action regarding U.S. shipbuilding. President Donald Trump has publicly committed to revitalizing the American shipbuilding sector for both military and commercial vessels.

To emphasize this point, President Trump remarked, “We used to make so many ships… We’re going to make them very fast, very soon. It will have a huge impact.” In alignment with this initiative, four major labor union leaders have urged President Trump to reinforce American shipbuilding and implement tariffs against China’s growth in this area.

Matthew Funaiole, a senior fellow at CSIS, commented on the emerging recognition of the strategic importance of shipbuilding and port security amid challenges from China. He noted that this issue resonates across the political spectrum.

The report highlighted an extraordinary resurgence in China’s shipbuilding industry, primarily driven by the state-owned China State Shipbuilding Corporation (CSSC), which transformed from a marginal player to a major global contender. This growth coincided with a significant expansion of the Chinese navy, now operating 234 warships compared to the U.S. Navy’s 219 vessels, though the U.S. still holds an edge in advanced ship classes.

The research team noted the strategic advantage provided by China’s use of the

The findings outlined in the CSIS report underscore the critical challenges posed by China’s dominance in shipbuilding, which has far-reaching implications for U.S. economic security and military capacity. Urgent actions are needed to revitalize the American shipbuilding industry and forge international collaborations to counterbalance China’s growing influence in this strategic sector. The insights provided also highlight the need for a comprehensive understanding of the dual-use nature of shipbuilding and the necessity for proactive measures to ensure the U.S. maintains its competitive edge in the face of these escalating challenges.

Original Source: apnews.com

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