China’s Shipbuilding Dominance: A National Security Concern for the U.S.
China has emerged as the leading shipbuilder globally, controlling over half of the market, while the U.S. share has dwindled to 0.1%. This development presents significant economic and national security risks for the U.S. According to a CSIS report, urgent measures are required to revitalize U.S. shipbuilding and counteract China’s military fusion strategy.
In the last twenty years, China has ascended to the forefront of shipbuilding, capturing over half of the global commercial shipbuilding market, while the United States has seen its share diminish to merely 0.1%. This shift presents significant economic and national security concerns for the U.S. and its allies, as detailed in a recent report by the Center for Strategic and International Studies (CSIS).
The CSIS report highlights that one Chinese shipbuilder produced more commercial vessels by tonnage in 2024 than the entire U.S. shipbuilding industry has managed since the conclusion of World War II. Presently, China possesses the largest naval fleet in the world. The report emphasizes that the decline in U.S. and allied shipbuilding capabilities poses a dire threat to military readiness and diminishes economic opportunities, while simultaneously bolstering China’s ambitions of global power projection.
Concerns have intensified in the U.S. regarding its shipbuilding status amid growing competition from China, which ranks as the second-largest economy with aims to redefine the global order. At a recent congressional hearing, senior officials and lawmakers advocated for decisive measures to address these challenges.
Former President Donald Trump indicated intentions to “resurrect” the American shipbuilding sector, encompassing both commercial and military vessels. He announced plans to establish “a new office of shipbuilding in the White House,” aiming to accelerate domestic ship production.
Additionally, the leaders of four major labor unions have urged the Trump administration to bolster American shipbuilding and impose strong tariffs against China, recognizing the strategic importance of shipbuilding and port security in light of growing Chinese dominance. Matthew Funaiole, a senior fellow at CSIS and co-author of the report, commented on the bipartisan acknowledgment of these pressing issues.
The CSIS report further noted a remarkable transformation in China’s shipbuilding industry over two decades, evolving from a minor sector to the dominant force worldwide, largely driven by the China State Shipbuilding Corporation (CSSC). Concurrently, the Chinese navy has expanded significantly; last year, assessments indicated China operated 234 warships, compared to the U.S. Navy’s 219 vessels.
The researchers scrutinized CSSC’s application of China’s “military-civil fusion” strategy, which intertwines the defense and commercial sectors. They found that three-quarters of CSSC’s commercial production is sold internationally, including to U.S. allies like Denmark, France, Greece, Japan, and South Korea, which inadvertently aids China’s naval modernization by funding defense contractors with vital dual-use technologies.
In light of these findings, the report recommends that the U.S. invest in revitalizing its shipbuilding industry and collaborate with allies to expand shipbuilding capabilities outside of China. Immediate actions suggested include imposing docking fees on Chinese vessels and severing financial ties with CSSC and its subsidiaries to counteract China’s dual-use ecosystem.
The Trump administration has already proposed new fees for China-affiliated vessels accessing U.S. ports, alongside a BlackRock-led consortium’s recent agreement to acquire stakes in 43 global ports, including several near the Panama Canal.
In summary, China’s dominance in shipbuilding poses critical economic and national security threats to the United States and its allies. As China’s shipbuilding capabilities have surged, the U.S. has witnessed a sharp decline in its own ship production. The report by CSIS underlines the necessity for the U.S. to invest in maritime infrastructure, implement strategic measures against Chinese competition, and collaborate with allies to restore its standing in the global shipbuilding market.
Original Source: www.defensenews.com
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