In a warning to the Congress, it was stated that the Communist Party of China (CPC) is surpassing the United States in both maritime shipping and naval vessel construction, which has prompted President Donald Trump to initiate a new shipbuilding program.
For over a century, military and political leaders have acknowledged the significance of maritime shipping and naval supremacy. Franklin Delano Roosevelt once said, “Our shipbuilding program — not only that of the Maritime Commission but also that undertaken by our Navy — is one of our answers to those who would challenge our liberties.” Roosevelt, who served as Assistant Secretary of the Navy (1913–1920) and later as the 32nd President of the United States (1933–1945), led the country through World War II.
Despite the long-standing recognition of this viewpoint, the United States has fallen behind its main competitor, China, in the shipbuilding industry. China’s commercial fleet boasts over 5,500 vessels, far exceeding the number in the U.S., which ranges from 80 to 179 privately owned vessels flying the American flag, depending on the criteria used to define a commercial fleet.
Furthermore, the current number of vessels in the People’s Liberation Army Navy (PLAN) has surpassed that of the U.S. Navy, totaling 405 vessels, including 234 warships. In comparison, the U.S. Navy has 296 manned vessels, including combat logistics and support ships, of which only 219 are classified as warships. However, the U.S. still maintains a firepower advantage due to advanced technology and capabilities.
Over the past two decades, China has emerged as a leader in the global shipbuilding industry, controlling over half of the global market for commercial ship construction, while the U.S. market share has dwindled to negligible levels. In 2023, American shipyards produced approximately 64,809 gross tons of ships, accounting for a mere 0.1% of the global total of 64,774,769 gross tons.
In 2024 alone, the shipbuilding tonnage of a single Chinese shipyard exceeded the total output of the entire U.S. shipbuilding industry since World War II. The dominance of the Chinese shipbuilding industry is largely driven by the state-owned China State Shipbuilding Corporation (CSSC), which benefits from military-civil fusion allowing commercial sales to directly support naval expansion. Many U.S. allies, such as France, Japan, and South Korea, continue to purchase vessels from CSSC, indirectly contributing to the military development of the CPC.
Recently, a consortium led by BlackRock has been acquiring control over several key ports associated with Chinese interests, including those near the Panama Canal, as the first step in countering China’s growing maritime supremacy. Additionally, Trump has pledged to revitalize the American shipbuilding industry by establishing a White House Shipbuilding Office dedicated to serving the industry, and imposing tariffs and berthing fees on vessels built in China.
As part of this effort, the U.S. Trade Representative’s Office has proposed levying new fees and implementing priority carrying measures to counter China’s dominance in logistics and maritime trade. This plan includes charging up to $1.5 million each time a Chinese-built vessel docks at a U.S. port, $1 million for Chinese-operated vessels, and additional fees for companies ordering ships from Chinese shipyards.
Another key measure is the gradual implementation of a commercial cargo transportation priority policy, requiring a gradual increase in the percentage of U.S.-flagged vessels transporting exported goods, starting at 1% and reaching 15% within seven years. However, it remains uncertain whether U.S.-owned vessels built in China or foreign-flagged vessels incorporating Chinese components will be subject to the new fees.
Based on petitions from various labor unions nationwide, the U.S. Trade Representative has determined that China’s dominance in maritime shipping poses an unfair burden on American businesses, displacing foreign companies, weakening competition, and exacerbating the fragility of the supply chain. Supporters of the new fees argue that countering China’s dominance in shipbuilding is crucial to preventing the CPC from using its naval and merchant fleets’ advantageous position to intimidate allies and disrupt global trade.
On Capitol Hill, Representatives Mark Green (Tennessee Republican), Jen Kiggans (Virginia Republican), and Don Davis (North Carolina Democrat) jointly introduced a bipartisan bill calling for the establishment of a National Maritime Industry Infrastructure Commission to assess the current state of the U.S. shipbuilding industry and propose policy recommendations for restoring competitiveness. Kiggans and Davis emphasized the need for public-private cooperation to address the challenges faced by the ailing shipbuilding industry in terms of labor and supply chains.
Meanwhile, the Maritime Industrial Base (MIB) program launched in September 2024 aims to rebuild America’s shipbuilding and repair capabilities, with 1,100 investment projects advanced in 37 states supporting shipbuilding, aircraft carrier, and submarine production — marking the largest defense industry revitalization plan since World War II. Led by Matthew D. Sermon, appointed by Trump and previously responsible for submarine industrial bases, the program is expected to drive towards the President’s production goals.
Despite strong support from the President and many members of Congress, concerns linger over the feasibility of Trump’s shipbuilding strategy. The U.S. Navy’s plan to expand the fleet size from 296 combat vessels to 381 over the next 30 years requires hundreds of billions of dollars annually to achieve. Simultaneously, funding is urgently needed for commercial ship production, which has decreased from constructing 15 to 25 ships per year in the 1970s to five or fewer today.
Given the various constraints facing the U.S. shipbuilding industry, such as inefficient construction of large commercial vessels, some Senators propose outsourcing warship construction to NATO and Indo-Pacific allies like Japan and South Korea. Major shipbuilding companies, including the largest European shipbuilding group, Italy’s Fincantieri, welcome this plan, emphasizing its job creation potential and its ability to revitalize industrial infrastructure.
Despite financial and logistical limitations, expanding domestic shipbuilding capacity, rebuilding the commercial fleet, and strengthening naval power are crucial in curbing the CPC’s ambitions to dominate the global economy and maritime sector.