China's Shipbuilding Dominance Poses Economic and National Security Risks for the U.S.

Over the past two decades, China's shipbuilding industry has experienced remarkable growth, positioning the nation as the dominant force in global shipbuilding. As of 2025, China maintains over half of the world's commercial shipbuilding market, and the United States' share has reduced to as low as 0.1%. This enormous shift has enormous economic and national security implications for the U.S. and its allies, according to a recent report published by the Center for Strategic and International Studies (CSIS). (AP News)

China's Dominance in Shipbuilding

China's meteoric ascent in shipbuilding is due to state-backed initiatives and strategic investments. The China State Shipbuilding Corporation (CSSC) has spearheaded this expansion, dominating both commercial and military shipbuilding.

In 2024 alone, a single Chinese shipbuilder constructed more commercial ships by tonnage than the entire U.S. shipbuilding industry has produced since World War II.
China now possesses the world's biggest fleet of warships, exceeding that of the United States in the production and upgrading of ships.

This dominance of ship construction coincides with China's broader geopolitical ambitions, particularly in contested territories like the South China Sea. (AP News)

United States Economic Consequences

Loss of the American shipbuilding industry has broad economic implications:

Decrease in Manufacturing Jobs: The U.S. once had a solid shipbuilding sector that provided thousands of good-paying jobs. Its demise has created the loss of numerous skilled labor positions.
Increased Foreign Dependence: The U.S. now relies on foreign-built ships, and their supply chains are vulnerable to world-wide disruptions.
Reduced Competitive Edge: As China is building massive commercial fleets, America struggles with astronomical production costs and outdated facilities.

The dissipation of American shipbuilding capacity has direct effects on the U.S. economy, which are reducing its ability to compete in the global maritime sector. (Business Insider)

National Security Consequences

Besides economic exposure, Chinese shipbuilding dominance poses serious national security concerns:

Military Readiness: The U.S. Navy is facing production setbacks on ships, limiting its ability to counter global threats.
Power Projection Imbalance: China's shipbuilding industry allows it to expand its naval influence in strategic regions.
Infrastructure Dependence: U.S. ports rely on Chinese-produced cranes and ships, which are sources of cybersecurity and espionage risks.

CSIS cautions that this increasing imbalance "reduces military preparedness and contributes to China's global power-projection ambitions." (WSJ)

Recent U.S. Attempts to Revitalize Shipbuilding

Trump's Strategy to Rebuild American Shipbuilding

Former President Donald Trump has promised to "resurrect the American shipbuilding industry":

White House Office of Shipbuilding creation
Tariffs on Chinese-built ships arriving in U.S. ports
Investment in local shipyards for enhanced production

Trump's administration is also calling for legislation to cap reliance on Chinese-made maritime gear. (NY Post)

Legislative Initiative

The Jones Act (Merchant Marine Act of 1920), protecting America's maritime industry, is up for legislation to drive competition. (Wikipedia)
The Pentagon is under pressure to increase military ship production after it failed its seventh consecutive audit. (Business Insider)

Challenges to Revitalizing U.S. Shipbuilding

Despite these efforts, there are still significant challenges:

1. Shortage of Trained Professionals

There is a shortage of trained professionals to staff the United States shipbuilding industry on large-scale production.

2. Budget Constraints

Defense budget anomalies and supply chain disruptions delay shipyard output.

3. Dated Facilities

As opposed to China, the U.S. lacks new shipyard structures, leading to raised production expenses.

4. Technological Backwardness

China is investing heavily in autonomous vessels, AI construction, and next-generation warship designs, whereas the U.S. is struggling to modernize its fleet. (WSJ)

International Implications of China's Supremacy in Shipbuilding

1. Geopolitical Influence

China's enormous navy allows it to project power in disputed waters, including:

South China Sea – Dispute with the Philippines, Vietnam, and Taiwan
Indian Ocean – Greater presence around U.S. allies like India

2. Control Over Global Trade

China builds most of the world's container ships and tankers, and this allows it to impose its influence on international shipping policy.

3. Security Risks to American Allies

States that depend on Chinese-made warships (such as Pakistan and Cambodia) will be drawn increasingly into China's sphere.

U.S. Strategic Advice

To counter China's preeminence in shipbuilding, the U.S. must undertake firm measures:

1. Invest in Domestic Shipbuilding

The government must invest additional funds in refurbishing shipyards and developing cutting-edge naval technology.

2. Strengthen Military and Commercial Shipbuilding

The United States must increase production of both naval warships and freight ships to reduce reliance on foreign-built ships.

3. Expand Workforce Training Programs

Encourage vocational shipbuilding training and offer incentives to young professionals to enter the profession.

4. Create Stronger Trade Policies

America needs to impose limitations on Chinese-made port equipment and promote American-built ships for global trade.

5. Strengthen Alliances

Alliance with Japan, South Korea, and the EU to push back against China's shipbuilding power.

Conclusion

China's unparalleled shipbuilding dominance is more than an economic problem—it's a straight-up national security threat to the U.S. If America doesn't reboot its shipbuilding economy, it risks getting left behind in both trade maritime commerce and military presence projection.

With increased government interference, policy modernization, and visionary investment, America can restore its standing among the world's top shipbuilding economies—but the clock is ticking.

This article has been updated with the latest industry reports and government policies. For more details, visit: