Source: UN Comtrade Database, (Trade Data: Exports, HS 8901, 8902, 8905, 8906; accessed January 22, 2026).
Commentary: Shipbuilding is a critical industry to national and economic security, supplying the cargo vessels, fishing boats, and warships necessary for trade, commerce, and defense. In the early 2000s, China was a minor ship producer, holding just 4 percent of the global market share. At the time, the industry was instead controlled largely by Japanese and Korean shipbuilders. However, over the past 20 years, China has employed a series of policies to advance and strengthen its shipbuilding industry, making it the world's largest shipbuilder. The Chinese government has given the industry over $90 billion in direct subsidies since the early 2000s, while also subsidizing input materials, providing export tax rebates, and allowing discounted land and license purchases. Additionally, the Chinese government owns 46 of the 100 largest shipyards in the country, which collectively account for 64 percent of the country’s ship production. These favorable policy instruments have enabled the Chinese shipbuilding industry to grow at unprecedented speed. It now controls 55 percent of global market share, with exports increasing by 1,525 percent since 2004. In comparison, U.S. exports have fallen by 25 percent.
