The Silent Takeover: How China's Shipbuilding Boom is Reshaping Global Power

Image: Donald Trump and Xi Jinping in November 2017. Public Domain. Via Wikimedia Commons.

While the world was busy watching trade wars and tech races, China quietly launched a different kind of offensive-one that’s reshaping the balance of power at sea.

China has quietly but decisively taken command of the global shipbuilding industry—and with it, a growing influence over the world's maritime order. Once a minor player with just 5% of the global market in the early 2000s, China now accounts for over 53% of global shipbuilding value as of 2024. In contrast, South Korea and Japan — once the industry giants — now hold about 42% combined. The United States, remarkably, contributes less than 1%, highlighting its near absence from the commercial shipbuilding race.

This is not just an economic shift; it's a strategic transformation with serious military implications.

China’s Rapid Rise: More Than Just Numbers

The rise of China in shipbuilding didn’t happen overnight. It’s the product of calculated policy decisions, heavy state subsidies, low-cost labor, and a focused integration of commercial and military objectives. Through what it calls “military-civil fusion,” China has made it nearly seamless for its commercial shipyards to also serve its navy. Today, many of China’s state-run shipyards churn out both cargo ships for export and warships for the People’s Liberation Army Navy (PLAN).

The scale is stunning: In 2024 alone, China's largest state-owned shipbuilder produced more ships by tonnage than all U.S. shipbuilders combined since World War II. Between 2022 and 2024, China received thousands of ship orders, dwarfing the U.S., which received just 11.

Roughly 75% of vessels built in China’s dual-use shipyards are sold to foreign buyers—including from U.S. allies—who pour billions into China’s economy and inadvertently bolster its military-industrial base. This influx of revenue and technology makes China's shipbuilding sector not just a commercial powerhouse but a strategic asset.

Military Consequences: China’s Expanding Navy

With the help of its commercial base, China’s navy has grown faster than any other in recent history. As of 2025, the PLAN operates a fleet of around 370 warships, compared to the U.S. Navy’s 300. By the end of this year, China’s fleet is expected to reach 395, and by 2030, 435. Meanwhile, U.S. fleet projections remain flat.

Back in 2005, the U.S. Navy had more ships than China. Now, the situation is reversed—and the trend shows no sign of slowing.

This fleet isn’t just large; it’s modern. China has invested heavily in major surface combatants, submarines, aircraft carriers, and amphibious assault ships, allowing it to project power far beyond its shores.

The U.S. Counter-Effort

Washington is finally waking up to the maritime challenge. On April 9, 2025, the Trump administration issued an executive order aimed at reviving domestic shipbuilding. It calls for increased federal funding, competitive ship designs, infrastructure upgrades, and a skilled maritime workforce. A month earlier, the “Save Our Shipyards Act” was introduced by a group of military veterans with a similar goal: to boost naval capacity and secure the maritime industrial base.

Both moves are signs of urgency. The U.S. Navy has struggled for years with cost overruns, delayed projects, and inefficient private shipyards. This has hampered its ability to scale up and modernize. With China surging ahead, the stakes have never been higher.

Indo-Pacific Pressure and the Arctic Front

China’s maritime ambitions don’t stop at shipbuilding. In the Indo-Pacific, Chinese vessels are more active than ever in contested regions like the South China Sea, Taiwan Strait, and around Japan. The U.S. has been trying to reinforce its presence in response, recognizing the region as key to maintaining global power projection.

In March 2025, the U.S. Assistant Secretary of Defense briefed Congress, highlighting China’s growing belligerence and calling for renewed deterrence in the region. Countries like Japan, South Korea, and the Philippines have echoed these concerns.

Meanwhile, in the Arctic—a lesser-known front in this rivalry—China has been expanding its presence. It already operates three advanced icebreakers in Arctic waters and is working with Russia to develop the Northern Sea Route, a potential trade shortcut that could sidestep traditional maritime chokepoints.

The U.S., on the other hand, has only one aging operational icebreaker. In 2024, it partnered with Canada and Finland to launch the Icebreaker Collaboration Effort, also known as the “Ice Pact.” In 2025, Trump announced an ambitious plan to build 40 new Coast Guard icebreakers to close the gap and secure American interests in the region.

What Lies Ahead

America’s path forward is not without obstacles. Reviving a stagnant shipbuilding industry requires more than money—it needs coordinated policy, long-term commitment, skilled labor, and public-private partnerships. The executive order acknowledges this, calling for a comprehensive approach to revamp the U.S. maritime sector.

For now, China’s model of dual-use shipbuilding—combining economic and military output—has positioned it as the leading maritime power of the 21st century. The U.S., once dominant, now finds itself racing to catch up.

If Washington can turn recent momentum into meaningful action, it may still be able to rebalance the scales. But the window for a course correction is narrowing—and the waves are rising.