Posted on January 5, 2026
As of 2023, China has emerged as the world’s largest shipbuilder, accounting for nearly 50% of global commercial shipbuilding. This marks a significant shift in maritime manufacturing dominance, overshadowing South Korea and Japan, which follow in the rankings. Historically, the U.S. had a strong shipbuilding industry, especially during World War II, when American shipyards produced vessels at a rate faster than they could be sunk by German U-boats. However, that capacity has drastically diminished, with the U.S. now producing only a minimal volume of commercial ships.
China’s shipbuilding capabilities have become a key strategic asset for its government under President Xi Jinping, contributing to its ongoing efforts to reshape the global order and prepare for military expansion. Chinese shipbuilders are fully engaged, crafting both commercial vessels—like container and bulk cargo ships—and military ships for the People’s Liberation Army Navy (PLAN). The ability to switch production focus between commercial and military ships provides China with greater flexibility and scale, significantly enhancing its naval power.
In contrast, U.S. shipbuilding is facing numerous challenges, including backlogs, workforce shortages, limited suppliers, and budget overruns. The situation underscores not only the economic advantages China enjoys in this sector but also the geopolitical consequences. With the majority of European countries contributing only about 5% to global ship production, the Western world appears sidelined in this maritime competition.
Indeed, satellite imagery from May 2023 reveals the extensive operations at Chinese shipyards like Jiangnan, where a multitude of vessels, including destroyers and China’s third aircraft carrier, are under construction and refurbishment. The scale of operations at these facilities is unprecedented, with dozens of ships being built simultaneously, highlighting the lack of comparable capacity in the United States.
China’s growing shipbuilding prowess poses broader implications for international relations and military balance, signaling a shift in power dynamics. U.S. dependencies on outdated facilities and lagging production capacities suggest a continuing decline in its once-dominant position in global shipbuilding. As the geopolitical landscape evolves, the ramifications of these maritime developments will likely extend beyond mere economics, affecting global military strategies and alliances in the years to come.
