As China tightens its grip on the global shipbuilding industry, the United States finds itself facing an escalating threat, not just to its economic interests but to its national security. With the rising tensions surrounding Taiwan and China’s increasing military ambitions, this growing power in maritime production is not only a challenge—it is a deliberate, calculated strategy by Beijing to dominate the seas and, by extension, the world. The U.S. faces a dire situation as China’s expansion is fueled by aggressive state-backed tactics that undermine fair competition, threaten American industries, and provide China with military leverage in ways the U.S. is ill-prepared to counter.
China’s Shipbuilding Empire: A Strategy of Domination
The stark numbers alone make it clear: China’s shipbuilding capacity is over 200 times larger than that of the United States. In 2023, China delivered 689 large commercial ships and commissioned 30 warships for the People’s Liberation Army Navy (PLAN)—outpacing the U.S. by a terrifying margin. In contrast, U.S. shipyards delivered zero large commercial vessels and a mere nine ships for the U.S. Navy. As Scott Paul, president of the American Alliance for Manufacturing, pointed out, “China’s shipbuilding capacity is 232 times greater than our own.” This disparity is not an accident but the result of years of deliberate, government-backed policies aimed at ensuring China’s control of global maritime infrastructure.
China has surpassed the U.S. in every conceivable way. In 2023, Chinese shipbuilders controlled over 50% of the global $150 billion shipbuilding industry, a stunning rise from just 5% in 2000. Meanwhile, American shipbuilders now barely account for 1% of the global market. While the U.S. once led the world in shipbuilding, its once-thriving industry has been crippled by decades of deindustrialization and neglect, leaving it vulnerable to China’s systematic, calculated rise. With 13 shipyards—and more being developed—China now has the capacity to produce far more ships than the U.S., and its influence extends well beyond mere production numbers.
But the threat to U.S. security is not limited to commercial vessels. China’s shipyards, with their vast production capabilities, also build warships. This dual-purpose strategy of creating both commercial and military vessels within the same industrial infrastructure gives China a strategic edge that the U.S. simply cannot match. As former U.S. Navy Secretary Carlos Del Toro starkly put it, “One of China’s shipyards has more capacity than all of the American ones combined.” This massive advantage is not just about economic growth—it’s about a deliberate plan to dominate the seas, secure critical maritime chokepoints, and position China as the undisputed maritime power of the 21st century.
A Web of Unfair Practices
The rise of China’s shipbuilding empire is not a result of natural competition or innovation—it is the product of systematic cheating. China has used a combination of state-subsidized funding, intellectual property theft, and labor exploitation to corner the market. According to a U.S. Trade Representative (USTR) investigation, China’s government has been “showering its maritime industry with billions of dollars in annual support,” while at the same time keeping labor costs artificially low. The U.S. report found that Chinese entry-level mariners working on ships that dominate global trade earn just $8,000 per year for 11 months at sea—barely a fraction of what American mariners expect.
This wage disparity is not accidental. It is part of a broader strategy to suppress labor costs and flood the global market with low-cost vessels. Meanwhile, China’s maritime industry operates under a cloud of unfair policies, including forced technology transfer and intellectual property theft. These practices ensure that China’s shipbuilders maintain an edge by stealing advanced Western technologies and forcing foreign firms to hand over proprietary designs. This manipulation of the market ensures that U.S. competitors have little chance of keeping up.
These unfair practices have been the driving force behind China’s market domination. As the USTR investigation concluded, China’s practices have “severely undermined fair competition,” putting American industries at a disadvantage. While China continues to expand its influence with state-backed support, the U.S. finds itself incapable of catching up—not because it lacks the resources, but because the rules of competition have been rigged against it.
The Strategic Military Implications: A Threat to U.S. Security
China’s control over global shipbuilding and maritime infrastructure is not just about economic dominance—it’s a national security threat. With its control over shipbuilding, China is positioning itself to control the seas. By dominating key ports, shipping lanes, and critical infrastructure, China can effectively disrupt the global economy, making it harder for the U.S. to sustain trade and military logistics in the event of a conflict.
The U.S. Navy, while powerful, lacks the capacity to rapidly scale up its fleet in times of need. In the words of Bryan Clark and Michael Roberts, “The Pentagon lacks the basic maritime logistics capacity to resupply American troops overseas for more than a very short conflict.” This vulnerability is compounded by China’s ability to build ships at a fraction of the cost and time it takes for the U.S. to produce even a single vessel. The U.S. Navy’s reliance on a shipbuilding base that was designed to create only the most sophisticated warships means that the U.S. lacks the surge capacity to respond quickly to growing threats.
Meanwhile, China’s shipyards are not only building cargo vessels but are also producing warships at a staggering pace. As China’s shipbuilding empire expands, so does the size and power of the PLAN, giving China a military advantage in key regions, especially in the Indo-Pacific. This growing military power gives China the ability to project force far beyond its shores, enabling it to enforce its will on its neighbors and challenge U.S. dominance in the region.
The U.S. can no longer ignore the growing threat posed by China’s maritime empire. While there have been calls for tariffs or penalties against Chinese-built vessels, experts argue that these measures alone will not be sufficient. Rebuilding the U.S. shipbuilding industry will require a far more comprehensive strategy—one that involves both government intervention and private sector innovation.
A promising solution lies in the Ships for America Act, a bipartisan bill introduced in December 2024. This bill aims to increase the number of American cargo ships operating internationally and ramp up the construction of ships at U.S. shipyards. It also seeks to provide funding for military sealift needs and to bolster the U.S. maritime workforce. As Rep. Trent Kelly (R-Miss.) explained, the bill is designed to “jump-start America’s shipbuilding industry and reduce the risks in international supply chains.” By focusing on building American ships for both commercial and military use, the U.S. could regain its maritime edge.
However, this effort must go beyond just rebuilding shipyards. The U.S. must invest in modernizing its infrastructure, addressing the labor shortages that have plagued American shipbuilding, and providing the workforce with the necessary skills to meet global demand. As Scott Paul warned, “We need to act now to stop the decline of our shipbuilding industry.” The question is no longer whether the U.S. will act, but how long it can afford to wait before the consequences of inaction become too severe to reverse.
China’s rise to dominate the global shipbuilding industry is not a result of fair competition, but of a deliberate strategy to cheat, manipulate, and dominate. With its state-backed practices, low labor costs, and manipulation of global markets, China is positioning itself not only as an economic powerhouse but as a military superpower. The U.S. faces a growing vulnerability as China continues to expand its maritime influence, controlling key ports, shipping lanes, and the ability to disrupt global trade. If the U.S. does not act quickly to rebuild its shipbuilding capacity, it will find itself at a severe disadvantage in the years to come. The stakes are high—not just for the American economy, but for national security. The question is whether the U.S. can summon the will to respond before it’s too late.
ACZ Editor: The Biden Administration has left us woefully unprepared for the beast that China is coming. Will the competence of a Trump Administration be enough to bring us to parity in numbers and keep our technological advantage? Tough to say, it is a deep hole.
