As China continues to dominate the global shipbuilding industry, the US is under increasing pressure to respond with stronger measures. The US Trade Representative's office has pointed out that China’s non-market practices in shipbuilding are undermining US commerce, a concern that has sparked a proposal for penalties on companies using Chinese-built ships.
This issue has gained momentum with the introduction of the bipartisan SHIPS for America Act in December 2024, which already imposes duties on goods imported on Chinese-owned and flagged vessels. However, experts from the Centre for Strategic and International Studies (CSIS) argue that the legislation needs to be more comprehensive. The current measures do not target vessels built in Chinese shipyards—many of which are involved in producing warships for China's People’s Liberation Army Navy (PLA Navy).
The CSIS experts, including Matthew Funaiole, Brian Hart, and Aidan Powers-Riggs, emphasize the growing risks to US economic and national security if China’s shipbuilding expansion is left unchecked. They stress that China's aggressive industrial policies, combined with the increasing militarization of its shipbuilding sector, are eroding the capabilities of US and allied industries. Since 2010, the US has already witnessed the closure of several major shipyards, further highlighting the need for intervention.
One of the most alarming aspects of China’s shipbuilding dominance is the integration of military and civilian ship production, a strategy known as "military-civil fusion." Many Chinese shipyards are involved in the construction of both commercial and military vessels, further blurring the lines between economic and strategic military interests. This presents a significant challenge for the US, as Chinese-built ships may also serve dual purposes, potentially strengthening China’s naval capabilities.
The ramifications of China’s growing control over the shipbuilding industry extend beyond the US. As China strengthens its shipbuilding sector, its influence on global trade routes, military operations, and economic policies also grows. For the US and its allies, this means that China could potentially leverage its control over shipbuilding to disrupt supply chains, increase its military presence in strategic regions, and dominate maritime commerce.
By taking decisive action, the US could not only protect its economic interests but also ensure that its national security remains secure in an increasingly complex global maritime environment. The time for policy reform and international collaboration is now, and the US must act swiftly to bolster its shipbuilding industry and counter China’s rising influence in this critical sector.
