American lawmakers told US must learn from China to revive shipbuilding

If the US hopes to rebuild a competitive shipbuilding industry and narrow China’s commanding lead, it should adopt some lessons from Beijing – emphasising long-term planning, steady government funding and policy consistency, witnesses told a US Senate hearing this week.

China’s phenomenal rise in the global shipbuilding sector has caught the attention of Washington’s policymakers who are keen to restore the nation’s commercial fleet and production capacity, leading many to blame China for “unfair” trade practices amid fear of global dominance.

“One of the things we’ve always advocated for was just a simple thing: having a national maritime strategy,” testified Matt Paxton, president of the Shipbuilders Council of America. “We have these things for defence. We have them for other transport modes. We don’t have it for the maritime industry.”

“And China did their five-year plans and grew,” Paxton, whose council represents 175 companies across the nation, told the US Senate Committee on Commerce, Science and Transportation. “They played a long game.”

While the shipbuilders council clearly has a vested interest, the US reflection arrives at a time when shipbuilding has become a core issue at the negotiation table. Washington slapped a port fee on China-flagged and China-built vessels from mid-October, prompting Beijing to respond with a “reciprocal” charge. Chinese authorities have vowed to further consolidate their dominance, with broad implications for global supply chains.

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Hours before the Senate hearing, Chinese leaders released key points of their next five-year plan, including vows to elevate economic growth, enhance tech self-reliance and empower key industries, such as an upgrade of traditional and future industries and advanced manufacturing.

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