If The U.S. Doesn’t Build More Ships, China Will Rule The Waves

During his recent address to Congress, President Trump announced the creation of a new Office of Shipbuilding within the White House, aiming to revive America’s once-thriving shipbuilding industry. This renewed focus on shipbuilding is not just timely; it is essential. The United States has fallen behind China in both commercial and military shipbuilding, putting our economic and national security at risk.

History shows no nation can achieve world-power status without also being a naval power. The United States has a storied legacy of maritime dominance. At the conclusion of World War II, the United States commanded the world’s most powerful navy and dominated maritime commerce, with its commercial marine fleet representing an astounding 50 percent of global cargo shipping capacity. More than one million Americans worked at American shipyards.

Unfortunately, decades of globalization and changing priorities from successive administrations have led to the alarming decline of the U.S. commercial shipping industry, which now accounts “for less than 1% of the world fleet.” While the U.S. Navy remains a formidable force, its fleet size is on a concerning trajectory of “managed decline.” Under the previous Biden administration, the U.S. Navy’s 2023 budget revealed intentions to acquire only nine new ships while decommissioning 24, resulting in a projected fleet of just 280 ships by 2027.

Meanwhile, for more than two decades, the Chinese Communist Party (CCP) has provided substantial subsidies to its shipping and shipbuilding industries, establishing a strong presence in the global commercial shipping market and commanding a fleet of more than 5,500 oceangoing merchant vessels actively engaged in international trade. If a military conflict were to arise between the United States and China, and China’s merchant vessels ceased operations, it could lead to significant disruptions in the flow of essential goods and materials, resulting in catastrophic consequences for the global economy. Moreover, China can quickly convert this extensive commercial fleet into a powerful naval force, enhancing its military strength.

Equally alarming is China’s commanding lead in shipbuilding. The Wall Street Journal reports that “China is the world’s biggest producer of containerships. Almost 29% of vessels in service today when measured by container capacity were made in China. … Chinese shipyards account for about 70% of new containership capacity on order.” A U.S. Naval Intelligence analysis shows Chinese shipbuilding capacity is more than 232 times greater than that of the United States.

China’s People’s Liberation Army (PLA) has leveraged the nation’s commercial ship-building capacity to expand its naval fleet quickly. During a Senate hearing last year, Sen. Dan Sullivan, R-Alaska, noted that “numerically, they [China] now have a larger Navy, roughly 370 ships to our 291 ships. Last year, they added 30 ships to their fleet; 15 were large surface combatants including cruisers, destroyers and another aircraft carrier. We added two.” He concluded that “China’s ‘rapid’ naval buildup has highlighted our own shipbuilding deficiencies.”

The speed of China’s warship building is simply astounding, with the Chinese completing construction runs for many naval warship classes in one to three years.  China is projected to have more than 400 ships and submarines in its fleet by 2030. The PLA Navy is not only growing the number of warships but also constructing more advanced ones. For instance, China has launched two aircraft carriers since 2017, with a third currently undergoing sea trials.

In addition, the Chinese Communist Party (CCP) is strategically leveraging its dominance in commercial shipping to pave ways for its navy’s presence worldwide. Chinese and Hong Kong-based firms now control or hold significant stakes in 95 foreign ports.

This extensive network of Chinese-controlled ports raises serious national security concerns, as naval ships rely on commercial ports for refueling, resupplying, and providing rest for their sailors. According to The Wall Street Journal, gaining access to facilities operated by Chinese companies can make it “easier, cheaper and more efficient [for China’s navy] to sustain fleets abroad.”

With its growing naval strength, the CCP is already pursuing ambitious geopolitical goals. In the South China Sea, PLA warships and coast guard vessels are routinely harassing Philippine fishing boats and maritime patrols, obstructing commercial activities, and undermining the sovereignty of the Philippines.

Last month, the PLA Navy conducted a surprising live-fire naval drill in waters between Australia and New Zealand, failing to notify either nation in advance. This disregard was so severe that the Australian government learned about the drill from a commercial pilot, leading to the diversion of numerous commercial flights in the area.

Such actions illustrate the Chinese Communist Party’s ambition to assert itself as a global powerhouse by flouting established international laws and norms. Since Australia, New Zealand, and the Philippines are key U.S. allies, the PLA’s provocative maneuvers not only threaten regional stability but also serve as a direct challenge to U.S. interests and influence.

In the United States, awareness of the dangers posed by China’s expanding naval capabilities amid America’s troubling “managed decline” is finally growing. In light of this, the Trump administration is taking significant steps to bolster the American shipbuilding industry.

Besides its announcement of a White House shipbuilding office, the Trump administration is reportedly working on an executive order to enhance investment in shipbuilding, including initiatives that would establish “maritime opportunity zones” and a “maritime security trust fund.” The executive order suggests imposing fees on Chinese ships and cranes at U.S. ports, with revenues earmarked for domestic maritime enhancements. In addition, some recommend the administration work closely with allies such as South Korea and Japan, both of which have excellent shipbuilding and maintenance capacity.

The Trump administration’s focus on reviving the American shipbuilding industry is timely. To ensure economic and national security, America needs more ships.