China's Industrial Ascent: Over 70% Share in Global Shipbuilding and EV Sales, While Advanced Chip Sector Remains Challenged

Beijing – China has solidified its position as a global industrial powerhouse, demonstrating significant advancements and market dominance across several key sectors, including high-speed rail, shipbuilding, and electric vehicles. However, this rapid ascent presents a contrasting picture in the highly specialized advanced semiconductor industry. As analyst Kyle Chan observed, "China has been able to catch up in many industries where the global pace of innovation has been relatively slow, like high-speed rail, shipbuilding, and automotive. Advanced semiconductors are a different story where you have companies like TSMC, Nvidia, and ASML."

China's high-speed rail network stands as the world's largest and most extensively used, boasting over 48,000 kilometers of operational lines by the end of 2024, accounting for more than 70% of the global total. The nation has independently developed advanced technologies, exemplified by the Fuxing series and the CR450 EMU prototype, which has achieved test speeds exceeding 450 km/h. This technological prowess has also translated into international cooperation, with China actively exporting its high-speed rail solutions worldwide.

In the shipbuilding sector, China has maintained its leading global position for 15 consecutive years. Data from the Ministry of Industry and Information Technology indicates that in 2024, China accounted for 55.7% of global shipbuilding completions, 74.1% of new orders, and 63.1% of orders on hand. Chinese shipyards are increasingly moving into high-value vessels like LNG carriers and large cruise ships, with seven of the world's top ten shipbuilders now based in China, underscoring its "unrivaled" status, according to BRS Group.

The automotive industry, particularly electric vehicles (EVs), showcases another area of significant Chinese influence. China's electric vehicle market is the largest globally, accounting for approximately 58% of global EV production in 2023. In 2024, electric car sales in China exceeded 11 million units, representing almost two-thirds of electric cars sold worldwide. Domestic brands like BYD have achieved substantial market share, driving rapid adoption and innovation within the sector, despite increasing trade tensions with Western markets.

Conversely, the advanced semiconductor industry presents a more formidable challenge for China. Global leadership in cutting-edge chip design and manufacturing remains firmly with companies like Taiwan Semiconductor Manufacturing Company (TSMC), which dominates the foundry sector, and Nvidia, a leader in AI chips. ASML, based in the Netherlands, holds a critical monopoly on Extreme Ultraviolet (EUV) lithography machines, essential for producing the most advanced semiconductors. While China is investing heavily in domestic capabilities, its progress in advanced nodes and equipment like EUV lithography lags significantly behind these global leaders, facing substantial technological hurdles and export control restrictions.