In a comprehensive report by the U.S. Trade Representative, it was revealed just how far the U.S. shipbuilding industry has fallen while China’s influence continues to grow. The report underlines the need for urgent policy actions to revitalize American shipbuilding and mitigate the risk of supply chain vulnerabilities.
The Daily Caller reported that the decline of the U.S. shipbuilding industry, juxtaposed with China's remarkable rise, poses significant economic and security threats, urging immediate intervention to revive domestic capabilities.
The U.S. shipbuilding sector, once a leader in the global arena, has witnessed a prolonged decrease in its production capabilities over several decades.
During the 1970s, the United States held the top position globally, producing more than 70 ships annually. Fast forward to today's landscape, and the U.S. finds itself ranked 19th worldwide, constructing fewer than five commercial ships each year.
China's ascent in the shipbuilding industry is nothing short of remarkable. In 1999, China's proportion of global ship tonnage was a mere 5%. By 2023, China had secured a dominant position, crafting over half of the world's ships, pushing out more than 1,700 vessels annually.
This surge has been fueled by China's strategic focus on high-tech ships and "green" maritime engineering. China’s presence is potent in this field, adapting and responding to market demands effectively.
The United States, in stark contrast, has seen its domestic steel shipments for shipbuilding diminish, affecting its industrial output and economic stability.
U.S. shipbuilding has been crippled not only by decreased production but also by the closure of landmark companies. Once-thriving enterprises like Avondale Shipyards and Bender Shipbuilding have shut their doors.
This contraction in the industry has led to significant job losses. From 2008 to 2021, the workforce involved in shipbuilding and repairs declined by nearly 15%, alongside a 19.5% reduction in production hours. These figures illustrate a diminishing sector unable to compete with China's efficiency and output.
Beyond shipbuilding, China's impact extends to U.S. maritime infrastructure. An estimated 80% of cranes at U.S. seaports are manufactured by ZPMC, a Chinese company.
This proliferation raises national security concerns regarding potential data access by the Chinese government, which could compromise sensitive information.
The report compiled by the U.S. Trade Representative was initiated following a request by six labor unions tied to the maritime industry. These unions have expressed alarm as China's rapidly growing market share continues to eclipse that of the United States.
Under Section 301 of the Trade Act of 1974, the U.S. Trade Representative holds the authority to address market practices that pose unreasonable burdens on American commerce.
Ambassador Katherine Tai emphasized that China's targeted industry dominance weakens fair competition, creating serious economic and security risks.
These concerns underscore the imperative for strategic economic policies to rebuild the U.S. industry's foundation.
Restoring shipbuilding capabilities would not only bolster economic security but also revitalize communities that historically relied on these industries for employment.
A look back to 1975 highlights a stark contrast in global shipbuilding leadership. The United States, at its peak, was an industry powerhouse, a stark reminder of the potential that once was. Now, the challenge lies in reclaiming some of that lost ground in a market overwhelmingly dominated by Chinese production efficiencies and investments.
Envisioning a brighter future for American shipbuilding involves leveraging innovation and strategic partnerships. Investments in high-tech and sustainable shipbuilding are deemed essential pathways to reset the declining trajectory and return to a competitive stance internationally.
