China now dominates the global shipbuilding market with over 50% share, while the U.S. has fallen to 0.1%. This shift poses serious economic and national security risks. The rise of the China State Shipbuilding Corporation (CSSC) exemplifies this trend, as the U.S. seeks to bolster its shipbuilding industry amidst pressing geopolitical challenges.

In the past two decades, China has emerged as the leading force in shipbuilding, commanding over half of the world’s commercial shipbuilding market, while the United States’ share has dwindled to a mere 0.1%. This significant shift presents grave economic and national security challenges for the U.S. and its allies, as reported by the Center for Strategic and International Studies (CSIS).

Notably, a single Chinese shipbuilder managed to construct more commercial vessels by tonnage in 2024 than the entirety of the U.S. shipbuilding industry has produced since World War II. The report highlights that China currently possesses the largest naval fleet globally, raising alarms regarding military readiness and economic implications for the United States and its partners.

The growing concerns over the state of U.S. shipbuilding capabilities come amidst rising geopolitical challenges, particularly from China’s ambitions to reshape the world order. During a congressional hearing in December, senior officials emphasized the urgency for action in this sector.

President Donald Trump has expressed intentions to rejuvenate the American shipbuilding industry, emphasizing both commercial and military vessels, and announced the creation of a new White House office dedicated to shipbuilding initiatives. He stated, “We used to make so many ships; we don’t make them anymore very much, but we’re going to make them very fast, very soon. It will have a huge impact.”

In February, labor leaders urged the Trump administration to implement tariffs and impose penalties on China to bolster American shipbuilding against the backdrop of China’s increasing domination in this field. Matthew Funaiole of CSIS noted the bipartisan recognition of shipbuilding’s strategic importance and the related challenges posed by China.

The CSIS report details a remarkable transformation within China’s shipbuilding sector over the last two decades, evolving from a minor participant to the dominant player through the China State Shipbuilding Corporation (CSSC). Concurrently, the Chinese navy is rapidly expanding, operating 234 warships compared to the U.S. Navy’s 219, although the United States maintains an edge in guided missile cruisers and destroyers.

The study assesses China’s use of the “military-civil fusion” strategy, which intertwines defense and commercial sectors, allowing CSSC to sell a significant portion of its commercial production to allied nations, thereby channeling critical investment into its military capabilities.

To contend with China’s advancements, the report recommends that the U.S. invest in revitalizing its shipbuilding industry and collaborate with allies to enhance global shipbuilding resources. Immediate actions suggested include imposing docking fees on Chinese vessels and severing financial connections with CSSC and its subsidiaries.

The Trump administration has proposed additional fees on vessels associated with China entering U.S. ports. A consortium led by BlackRock has also recently acquired stakes in 43 global ports, including those surrounding the Panama Canal, emphasizing strategic interests.

In conclusion, China’s prevailing dominance in shipbuilding presents significant economic and national security risks for the United States. The need to revitalize U.S. shipbuilding capabilities has gained prominence among lawmakers and industry leaders alike. Strategies proposed include hefty investments in domestic production and the establishment of punitive measures against Chinese maritime entities to rebalance the competitive landscape.

Original Source: www.usnews.com

Related posts:

China’s Shipbuilding Dominance: Economic and National Security Implications for the U.S. China Retaliates with Tariffs on U.S. Agricultural Products Amid Trade Tensions Increased Tensions: China’s Defiant Stand Against U.S. Pressure China Restructures Trade Tactics Amidst Renewed U.S. Tariffs