The United States is actively working to revitalize its shipbuilding industry in a strategic move to counter China’s dominance in global ship construction. This initiative comes amidst rising tensions between the two nations, as the U.S. aims to reclaim its position in a sector where it once led the world.

In a related development, Japan’s leading shipping company, Mitsui OSK Lines, has announced a temporary halt on ordering liquefied natural gas (LNG) carriers from Chinese shipyards. As reported by Nikkei on May 23, Mitsui’s CEO, Teshi Hashimoto, stated that the company would adopt a cautious approach to new contracts with Chinese builders. Mitsui currently boasts the largest fleet of LNG carriers in the world, with plans to expand from 107 vessels to 140 by 2028 to meet increasing global demand.

The U.S. Trade Representative recently unveiled plans to impose new port fees on ships built or registered in China, effective October 2025. This move, which charges $50 per net ton for entry into U.S. ports, is designed to encourage domestic shipbuilding and reduce reliance on Chinese vessels, which currently dominate the market, holding over half of global new ship orders.

Historically, the U.S. shipbuilding industry was at its peak during World War II, operating over 100 shipyards and employing 1.4 million workers. However, China’s shipbuilding capabilities have since surpassed those of the U.S., with a capacity 232 times greater in terms of commercial shipping tonnage. Recent analyses show that Chinese shipyards continue to secure substantial international orders, showcasing their competitive advantage.

In response to these challenges, the U.S. has introduced the “Ships for America Act,” aimed at bolstering domestic capacity and ensuring that a significant portion of U.S. LNG and crude oil exports are transported by American-built ships. With strategic partnerships forming between the U.S. and allies such as Japan and South Korea, the global shipbuilding landscape may undergo significant changes in the coming years. As these nations work to enhance their shipbuilding capabilities, they aim to diminish China’s influence in the industry, ensuring a more robust and secure supply chain for the future.