The Chinese Communist Party has spent decades working to dominate the global shipbuilding, maritime and logistics sector. The result? China has seized massive market shares, suppressed prices, and built a system of ports and logistics infrastructure that discriminates against U.S. ships and shipping companies and directly undermines our nation's industrial base.
"Even Adam Smith, the father of modern capitalism, believed that shipbuilding was one of the very few industries that deserved national support and should not be left to market forces alone."
The entrenchment of China's dominance means that U.S. international trade would be "carried out on vessels made in China, financed by state-owned Chinese institutions, owned by Chinese shipping companies, and reliant on a global maritime and logistics infrastructure increasingly dominated by China.
Excerpt from USTR's Comprehensive Report
The shipping sector carries 90% of all traded goods globally.
The Chinese Communist Party designated shipbuilding as a "pillar" or "strategic" industry 20 years ago. Since that time, a whole-of-government efforts has been undertaken to dominate that "strategic" industry.
The result of that effort is "an integrated network of Chinese-built vessels, owned and operated by Chinese shipping companies and others, financed by Chinese banks, and favored by a growing web of global ports and terminals owned by Chinese State-Owned-Enterprises."
In the first half of this year, Chinese shipyards secured almost 75% of the world's new orders.
The ability of a nation to build and repair vessels is critical to national security
In recent years our leaders have recognized the importance of growing and maintaining our nation's strategic commercial fleet. Our men and women in uniform rely on these vessels to... Today, those fleets are being built with Chinese-made vessels.