In February 2025, the US Trade Representative’s office concluded that China’s non-market practices in shipbuilding undermine US commerce and proposed penalties on companies using Chinese-built ships.
The bipartisan SHIPS for America Act, introduced in December 2024, already includes duties on goods imported on Chinese-owned and flagged vessels. However, CSIS argues that it needs to be enhanced, particularly to target vessels built in Chinese shipyards, many of which also produce warships for China’s People’s Liberation Army Navy (PLA Navy).
CSIS experts Matthew Funaiole, Brian Hart, and Aidan Powers-Riggs warn that ignoring China’s dual-use shipbuilding ecosystem would jeopardize both US economic and national security. “China’s aggressive industrial policies and increasing control over global shipbuilding could further erode the industrial capabilities of the US and its allies,” they wrote, citing the closure of several major US shipyards since 2010.
CSIS recommends a series of targeted actions, such as imposing docking fees on Chinese ships, restricting the transport of critical US goods on Chinese vessels, cutting ties with Chinese shipyards supporting China’s naval buildup, and using diplomacy to encourage allies to implement similar measures. The think tank also calls for long-term investments in US shipbuilding and coordinated efforts with allies to boost global shipbuilding capacity outside of China.
