U.S. Congress: “Urgent National Strategy Needed for Revival of Shipbuilding Industry”
Global Market Share Drops to 1% While China Holds Top Position
Protectionism Hinders Innovation, Specialization, and Efficiency in Shipbuilding Industry
Directly Linked to National Security Crisis: “No Strong Navy Without Shipbuilding Industry”
Ultimately, U.S. Sends SOS to Korea and Japan to Connect for Mutual Benefit,
U.S. Navy nuclear-powered aircraft carrier Carl Vinson entering Busan Port in November last year. Yonhap News,
, ‘[Seoul Economy]’,
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, ‘On the 8th (local time), a report titled ‘Congressional Guidance for National Maritime Strategy (Restoring U.S. Maritime Capabilities)’ was released at the U.S. Congress. Key members from both parties, including Senators Marco Rubio and Mark Kelly and Representatives Mike Waltz and John Garamendi, participated in the presentation. The core content emphasized the need for an urgent national strategy to revive the U.S. shipbuilding and maritime industry. Senator Rubio stated, “U.S.-China competition will define the 21st century, and the most intense battleground between the two countries is at sea,” urging a multinational response. The report also highlights the importance of cooperation with allied countries to restore U.S. maritime capabilities.’,
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, ‘This movement in the U.S. Congress is closely related to the dire reality of the U.S. shipbuilding industry. According to the Financial Times (FT), the U.S. shipbuilding industry, which was once the world’s leading shipbuilder, producing 70 commercial vessels in a single year in 1975, now holds less than 1% global market share after more than 50 years. Meanwhile, China’s shipbuilding industry has surged to the top of the global market supported by extensive government subsidies and strategic support. Last year, China produced over 1,000 ocean-going ships, in stark contrast to the meager 10 produced by the U.S.’,
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, ‘The downfall of the U.S. shipbuilding industry, which prided itself as a maritime power, can be attributed to various factors, with the Jones Act playing a significant role. Enacted in 1920, this law stipulates that only U.S.-built, owned, and operated ships can transport goods and passengers between U.S. ports. Colin Grabow of the Cato Institute pointed out that the Jones Act has hindered the expansion, efficiency, innovation, and specialization of the U.S. shipbuilding industry, ultimately leading to its decline. The price of a tanker built in the U.S. is over four times higher than in other countries, making it difficult for the shipbuilding industry to survive without the protection of the Jones Act.’,
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, ‘The U.S. Navy views this situation as a national security crisis. U.S. Navy Secretary Carlos Del Toro stated in a lecture at Harvard Kennedy School last year, “There is no historical precedent for a country with a weak shipbuilding and maritime industry possessing a great navy.” He expressed serious concerns about the significant gap between the U.S. and China in the commercial shipbuilding market. Referring to the influence of Alfred Thayer Mahan’s writings on naval power, Del Toro mentioned, “China’s leadership has read and studied Mahan’s theory, and their actions reflect that.”.’,
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, ‘The recent initiation of a Section 301 investigation by the U.S. Trade Representative against the Chinese shipbuilding, maritime, and logistics industry clearly demonstrates America’s fear regarding China’s capabilities. While the investigation was initiated in response to petitions from five labor unions, including the United Steelworkers, it is widely seen as a means to restrain the Chinese shipbuilding industry through dialogue with the government. The ultimate goal of this investigation within the U.S. is perceived to target the weakening of China’s shipbuilding capabilities, particularly focusing on China State Shipbuilding Corporation (CSSC), a key company in China’s civil-military fusion strategy producing warships for the People’s Liberation Army Navy.’,
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, ‘However, the challenge for the U.S. lies in the fact that even with increased trade pressure on China, its industrial competitiveness, eroded over decades, cannot be easily restored. U.S. shipyards are grappling with aging facilities, high labor costs, and disruptions in the supply chain for raw materials and parts. Thus, the U.S. is pursuing a strategy to revitalize its shipbuilding industry by leveraging the capital and technology of Asian allies such as Korea and Japan. Entrusting the maintenance, repair, and overhaul (MRO) of U.S. warships to Korean and Japanese companies is just the beginning, and security experts in the U.S. suggest that open collaboration with allies in ship manufacturing is essential to counter China. The current geopolitical crisis of U.S.-China competition and the vulnerability of U.S. industries highlight the need for a sophisticated industrial strategy that can turn these challenges into our advantage.’,
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