China Dominates Global Shipbuilding with Over 50% Market Share, U.S. Seeks Revitalization

China has solidified its position as the global leader in shipbuilding, consistently holding over 50% of the world's commercial shipbuilding capacity and order book in recent years. This dominance is a result of strategic industrial policies and significant state subsidies, prompting concerns and calls for action in the United States regarding its own declining shipbuilding capabilities. The disparity highlights a critical challenge for nations like the U.S. as they grapple with economic competitiveness and national security implications.

Recent data indicates China secured nearly 75% of overall new orders in 2024, representing 61.4% of the global newbuilding orders. This expansion is fueled by a well-established supply chain, efficient delivery, and cost-reduction efforts, though critics point to heavy state subsidies. A major merger between China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC), finalized in July 2025, further consolidates China's industry, creating a shipbuilding behemoth with an estimated $56 billion in assets and $18 billion in annual revenue.

The U.S. commercial shipbuilding sector, in stark contrast, has dwindled to an "insignificant fraction" of global output, building fewer than ten oceangoing commercial vessels in 2023 compared to China's over 1,000. This decline is attributed to high labor costs, expensive materials, and a historical lack of sustained national strategy to foster international competitiveness. The U.S. Navy estimates China's shipbuilding capacity to be 232 times greater than its own, raising significant national security concerns.

In response to China's growing dominance, U.S. labor and business groups have urged the United States Trade Representative (USTR) to implement relief measures. Proposed actions include docking fees on Chinese-built ships entering U.S. ports, restricting Chinese logistics platforms' access to U.S. shipping data, and requiring a growing percentage of U.S. exports to be transported by U.S.-flagged vessels. These efforts aim to revitalize the domestic shipbuilding industry and address what many see as unfair trade practices by China.

The "SHIPS for America Act," reintroduced by Senators Mark Kelly (D-AZ) and Todd Young (R-IN), proposes establishing a Strategic Commercial Fleet Program to grow the U.S.-flag fleet to 250 ships and expand cargo preference rules. Experts emphasize that rebuilding U.S. commercial shipbuilding capacity is an urgent need, not only for economic reasons but also for national security. The U.S. administration is also expected to release a Maritime Action Plan in November 2025, aiming to align trade tools with industrial strategy and strengthen domestic shipbuilding.