CNBC - Trump is targeting China-made containerships in new flank of global economic war on the oceans

Transportation analyst Arnav Rao warns that targeting Chinese shipping could disrupt global supply chains and escalate economic tensions.

U.S. government pushback against China’s growing dominance in the shipbuilding industry that began under President Joe Biden is being escalated by the Trump administration as part of the president’s widening global economic and trade war, with the world’s largest ocean freight companies facing the threat of fines of up to $1.5 million for Chinese-made container ships that call on U.S. ports.

In recent years, China’s presence in the shipbuilding sector has rapidly grown, with China overtaking former leader South Korea in all vessel building sectors. In 2024, Chinese-built container vessels held 81% market share, according to Veson Nautical data. In the bulk carrier fleet, Chinese ships represented 75% of the global fleet. In key energy markets, China has been increasing its presence as well. China now has a 48% market share in the liquified petroleum gas carrier market, edging out South Korea’s 46%. Only in the LNG carrier market did South Korea retain its lead, holding a 62% share versus China’s 38% share.

While China has been increasing its shipbuilding for decades, “the dominance of Chinese shipbuilding has been further elevated during the last five years,” said Peter Sand, chief shipping analyst at Xeneta. Attractive financing from Chinese banks and leasing institutions, improved quality of the output, and competitive pricing against the South Korean yards which have dominated the building of advanced and large ships, are all factors, he said.

Under Biden, U.S. Trade Representative Katherine Tai initiated an unfair trade investigation of China’s shipbuilding under Section 301 of the 1974 Trade Act. A report released in January 2025 concluded that China’s financial support, barriers for foreign firms, intellectual property theft, procurement policies, and forced technology transfers have given its shipbuilding and maritime industry an unfair advantage.

In his speech to Congress last week, Donald Trump announced that he would create a new office of shipbuilding in the White House that would offer special tax incentives to bring more shipbuilding back to the U.S.

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