Matthew P. Funaiole, Brian Hart, and Aidan Powers-Riggs
China has rapidly established itself as the world’s dominant shipbuilding power, marginalizing the United States and its allies in a strategically important industry. In addition to building massive numbers of commercial ships, many Chinese shipyards also produce warships for the country’s rapidly growing navy. As part of its “military-civil fusion” strategy, China is tapping into the dual-use resources of its commercial shipbuilding empire to support its ongoing naval modernization. Foreign companies are inadvertently helping to propel China’s naval buildup by buying Chinese-made ships and sharing dual-use technologies with Chinese shipyards.
U.S. policymakers need to act quickly in coordination with allies and partners to address the economic and national security threats posed by China’s shipbuilding industry. This report offers a detailed policy roadmap for how Washington can disrupt China’s military-civil fusion strategy, erode China’s market dominance, and increase shipbuilding capacity within the United States and key partner countries.
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