A recent report by the Center for Strategic and International Studies highlights China’s rapid rise to dominance in shipbuilding, currently controlling over half of the global commercial shipbuilding market. In stark contrast, the U.S. share has plummeted to a mere 0.1%.
This shift presents significant economic and national security threats to the U.S. and its allies. In fact, one Chinese shipbuilder managed to construct more commercial vessels by tonnage in 2024 than the entire U.S. industry has produced since World War II, according to the report.
China already boasts the largest naval fleet worldwide, and the report emphasizes that the decline of U.S. and allied shipbuilding capabilities constitutes an urgent military readiness concern. The erosion of domestic shipbuilding affects economic opportunities and bolsters China’s ambitions for global power projection.
Lawmakers and officials have expressed mounting anxiety regarding the state of the U.S. shipbuilding sector, especially in light of China’s growing influence as the world’s second-largest economy. Recently, President Donald Trump affirmed his administration’s commitment to revitalizing the American shipbuilding industry, both for commercial and military vessels.
He announced the establishment of a dedicated “office of shipbuilding” at the White House, asserting that restoring ship production would have significant benefits. In alignment with these efforts, labor unions have urged the administration to impose tariffs and other penalties on China due to its increasing hold on shipbuilding.
Matthew Funaiole, a senior fellow at CSIS, noted the bipartisan recognition of the strategic importance of shipbuilding and port security in countering the challenges posed by China. The report also explains that China’s shipbuilding sector has transformed dramatically over the past two decades, largely through the state-owned China State Shipbuilding Corporation.
As it expands its navy, the U.S. faces a multifaceted challenge. Researchers recommend that the U.S. rebuild its shipbuilding capabilities and collaborate with allies to mitigate reliance on China’s shipbuilding, suggesting immediate actions to level the playing field.