China’s Growing Grip on Global Shipbuilding Sparks U.S. Concerns: What It Means for the Future

China’s extraordinary rise as a dominant force in global shipbuilding is raising serious economic and national security concerns in the United States. In January 2025, the U.S. Trade Representative’s Office published a report highlighting the alarming extent of China’s control over the shipbuilding industry. The findings paint a sobering picture of an industry vital to global trade, where China now commands nearly two-thirds of shipbuilding orders worldwide. The stark contrast with American shipyards, which produce fewer than five ships annually, underscores the need for urgent action.

At the heart of China’s dominance lies its state-led, centralized approach to shipbuilding. By heavily subsidizing shipyards, maintaining excessive steel production, and integrating advanced digital logistics services, Beijing has built an industry capable of outpacing competitors across the globe. According to U.S. Trade Representative Katherine Tai, this market landscape is not one of fair competition. American manufacturers are being undercut by Chinese practices that limit opportunities for market-driven firms. Tai warned that the U.S. must recognize economic security as inseparable from national security and prioritize rebuilding its domestic shipbuilding industry.

The decline of U.S. shipbuilding is not a recent phenomenon. In 1975, the United States was producing around 70 commercial ships annually. Today, that number has plummeted to fewer than five, leaving the U.S. reliant on overseas interests for maritime needs. This shift creates serious vulnerabilities. Not only is America’s manufacturing base weakened, but supply chain resilience is also diminished, leaving both businesses and consumers exposed to rising costs and increased dependency on foreign actors.

Labor leaders have been vocal about the implications for American workers. David McCall, President of the United Steelworkers International, described the findings as a necessary wake-up call. He stressed that unfair trade practices have driven down wages, shuttered industries, and harmed communities across the country. U.S. policymakers, he argued, must act decisively to stop further erosion of critical sectors like shipbuilding. Similarly, Senator Mark Kelly expressed concern over the national security risks posed by China’s dominance, calling for policies to revitalize the U.S. shipbuilding sector.

Despite the urgency underscored in the USTR report, concrete actions remain uncertain. Although the report labeled China’s practices as “unreasonable” and “actionable” under Section 301 of the Trade Act of 1974, it fell short of recommending specific penalties. The onus now falls on President-elect Donald Trump to chart a path forward. Known for his tough stance on China during his previous term, Trump faces heightened expectations to impose measures such as tariffs or substantial investments in domestic shipbuilding. However, experts caution that reversing decades of decline will require more than punitive tariffs; it will demand a long-term strategy to rebuild industrial capacity and safeguard supply chains.

As the world waits for action, one truth is clear: the era of ignoring these challenges has passed. The U.S. must confront this economic and strategic shift head-on, or risk navigating an increasingly unbalanced maritime landscape.