China’s state-supported shipbuilding industry is rapidly eclipsing the United States, particularly the U.S. Navy, which is grappling with dwindling shipyards and strategic uncertainty. According to a report by the Center for Strategic and International Studies (CSIS), China has asserted itself as the global leader in shipbuilding, posing a significant threat to U.S. naval superiority in the Indo-Pacific region and beyond. The Chinese government employs an industrial policy and military-civil fusion (MCF) strategy to merge commercial and naval production, with the China State Shipbuilding Corporation (CSSC) dismantling the barriers between civilian and military sectors. CSSC’s high-risk shipyards produce both commercial vessels and warships, often financed by international clients, with over 75% of ships from Chinese yards sold to foreign buyers, indirectly subsidizing China’s naval expansion. With estimates showing that China’s shipbuilding capacity is 230 times greater than that of the U.S., the People’s Liberation Army Navy (PLAN) commands a fleet of 370 ships and submarines, compared to the U.S. Navy’s 295 vessels as of March 2025. This disparity places U.S. naval forces in a precarious strategic position, underscoring the urgency for comprehensive reforms in American shipbuilding capabilities.
