CSIS urges US to erode China's industrial dominance in shipbuilding

In February 2025, the office of the US trade representative found that China’s non-market practices in shipbuilding harm US commerce, and it proposed expansive penalties on companies operating Chinese-built ships.

The bipartisan SHIPS for America Act, introduced in December 2024 and supported by the US shipbuilding industry groups, leading experts and key figures in the Donald Trump administration, needs to be further strengthened with measures aimed at disrupting China’s dual-use shipbuilding ecosystem, the US think tank said in a recent brief.

While the legislation, in its current form, includes duties on goods imported on Chinese-owned- and -flagged vessels, it does not target ships built in Chinese shipyards, particularly yards that also build warships for the PLA Navy, the brief noted.

Failing to address the challenges posed by China’s dual-use shipbuilding ecosystem will have significant consequences for U.S. economic and national security, CSIS’ Matthew Funaiole, Brian Hart and Aidan Powers-Riggs observed in the brief.

“China’s aggressive industrial policies and growing hold over global shipbuilding threatens to further undercut the industrial capabilities of the United States and its allies. At least three major US shipyards have either closed or suspended operations since 2010. Continuing down this path will foreclose important economic opportunities and leave the United States with dwindling capabilities in a strategically important industry,” they wrote.

Their recommendations include imposing targeted docking fees on Chinese-owned ships and vessels made at key Chinese shipyards; restricting the transportation of certain critical US goods on Chinese ships and creating a list of trusted vessels; sever US financial and business ties with Chinese shipyards that directly support China’s naval modernization; using targeted diplomacy to encourage like-minded countries to implement similar measures; investing in long-term US shipbuilding capacity; and coordinating with allies to build additional shipbuilding capacity outside China.

ALCHEMPro News Desk (DS)