In recent years, China has emerged as a global powerhouse in shipbuilding, solidifying its position as the world’s leading manufacturer of commercial and military vessels. This dominance has raised significant concerns in the United States, particularly as geopolitical tensions between the two nations continue to escalate. The growing disparity in shipbuilding capacity between China and the U.S. has become a focal point of strategic competition, with implications for global trade, military power, and economic security.

According to a report by the Associated Press (AP), China now accounts for more than 50% of the world’s shipbuilding output, far surpassing the United States, which has seen its share of the industry decline dramatically over the past few decades. This shift is not merely an economic issue but also a strategic one, as shipbuilding is a critical component of both commercial and military strength. The U.S. Navy, once the undisputed leader in naval power, now faces the prospect of being outmatched by China’s rapidly expanding fleet, which is bolstered by its robust shipbuilding infrastructure.

The Rise of China’s Shipbuilding Industry

China’s ascent in the shipbuilding industry is the result of decades of strategic planning, government support, and investment. The Chinese government has prioritized shipbuilding as a key sector in its industrial policy, providing subsidies, tax incentives, and access to cheap financing for domestic shipyards. This support has enabled Chinese companies to undercut competitors on price and rapidly expand their market share.

In addition to commercial vessels, China has also focused on building its naval capabilities. The People’s Liberation Army Navy (PLAN) has undergone a dramatic modernization program, with a focus on developing advanced warships, submarines, and aircraft carriers. China’s shipbuilding prowess has allowed it to produce these vessels at an unprecedented rate, narrowing the gap with the U.S. Navy in terms of both quantity and quality.

The AP report highlights that China’s shipbuilding industry is not only larger but also more efficient than its American counterpart. Chinese shipyards benefit from economies of scale, advanced automation, and a highly skilled workforce. In contrast, the U.S. shipbuilding industry has struggled with declining investment, aging infrastructure, and a shrinking labor force. The last major commercial shipyard in the United States closed in the 1980s, and the country now relies on a handful of naval shipyards that are primarily focused on military contracts.

The U.S. Response: A Call to Revitalize Domestic Shipbuilding

The growing disparity in shipbuilding capacity has prompted calls for action in the United States. During the Trump administration, there was a renewed focus on revitalizing the U.S. shipbuilding industry as part of a broader effort to counter China’s rise. President Trump signed an executive order in 2017 aimed at expanding the U.S. Navy’s fleet to 355 ships, up from around 280 at the time. However, achieving this goal has proven challenging due to the limitations of the domestic shipbuilding industry.

The Biden administration has continued to emphasize the importance of shipbuilding, albeit with a different approach. The administration has sought to strengthen alliances and partnerships in the Indo-Pacific region, while also investing in domestic infrastructure and industrial capacity. The recently passed Infrastructure Investment and Jobs Act includes funding for port modernization and other initiatives that could indirectly support the shipbuilding industry.

However, experts argue that more needs to be done to address the structural challenges facing U.S. shipbuilding. The industry requires significant investment in modernizing shipyards, training workers, and developing new technologies. There is also a need for greater collaboration between the government and private sector to ensure that the industry can meet both commercial and military demands.

Geopolitical Implications

The disparity in shipbuilding capacity between China and the United States has significant geopolitical implications. Ships are the backbone of global trade, with over 80% of the world’s goods transported by sea. By dominating the shipbuilding industry, China has gained a strategic advantage in controlling the flow of global commerce. This dominance also extends to the military realm, where a strong naval presence is essential for projecting power and protecting national interests.

China’s growing naval capabilities have raised concerns about its intentions in the Indo-Pacific region and beyond. The country has been increasingly assertive in its territorial claims in the South China Sea, where it has built artificial islands and militarized outposts. A larger and more advanced Chinese navy could challenge U.S. influence in the region and undermine the security of American allies.

The United States has responded by increasing its naval presence in the Indo-Pacific and strengthening alliances with countries such as Japan, Australia, and India. However, these efforts may not be enough to offset China’s growing shipbuilding advantage. As the AP report notes, the U.S. Navy is facing a “ship gap” that could take decades to close, even with increased investment.

The Role of Technology and Innovation

One area where the United States still holds an advantage is in technology and innovation. American companies are leaders in developing advanced naval systems, including stealth technology, unmanned vessels, and hypersonic weapons. The U.S. Navy has also been investing in next-generation platforms, such as the Columbia-class ballistic missile submarine and the Ford-class aircraft carrier.

However, China is rapidly closing the technological gap. The country has made significant strides in developing its own advanced naval systems, including aircraft carriers, stealth destroyers, and hypersonic missiles. China’s shipbuilding industry is also investing in automation, artificial intelligence, and other cutting-edge technologies that could further enhance its competitiveness.

To maintain its edge, the United States will need to accelerate its investments in research and development while also fostering greater collaboration between the military, industry, and academia. The development of new shipbuilding technologies, such as modular construction and 3D printing, could help the U.S. industry become more efficient and cost-competitive.

Conclusion

China’s dominance in shipbuilding is a stark reminder of the shifting balance of power in the 21st century. The country’s ability to produce ships at scale has given it a significant advantage in both the commercial and military realms, posing a growing challenge to the United States and its allies.

Addressing this challenge will require a comprehensive and sustained effort by the United States to revitalize its shipbuilding industry, invest in new technologies, and strengthen its alliances. The stakes are high, as the outcome of this competition will have far-reaching implications for global trade, security, and the balance of power in the Indo-Pacific region and beyond.

As the AP report underscores, the shipbuilding gap between China and the United States is not just an economic issue but a strategic one. Closing this gap will be essential for ensuring that the United States can continue to protect its interests and uphold a rules-based international order in the face of an increasingly assertive China.

China’s Shipbuilding Dominance and the U.S. Response: A Growing Geopolitical Challenge