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Experts doubt viability of U.S. plan to revive shipbuilding by targeting China

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Experts doubt viability of U.S. plan to revive shipbuilding by targeting China

2025-03-25 19:39 Last Updated At:20:07

A new U.S. plan to impose millions of dollars in fees on Chinese ships is unlikely to succeed in reviving America's diminished shipbuilding sector, according to industry analysts.

The United States is considering fees of up to 1.5 million U.S. dollars on Chinese-made ships or vessels from fleets containing Chinese-built ships docking at U.S. ports. The move, reportedly part of a draft executive order by President Donald Trump, aims to revitalize the American shipbuilding sector, which currently accounts for only 0.1 percent of the global market.

The proposed fees follow a Section 301 investigation launched last year by the U.S. Trade Representative into China's alleged "unfair economic activities." The action has already drawn strong criticism from China.

Given more pressing concerns in sectors like automotive and semiconductors, the focus on shipbuilding raises questions about the administration's true motivations,

"The first aspect is that the United States is facing significant financial difficulties and needs to increase its revenue. Therefore, it has utilized all possible channels to boost its income. The second aspect is related to geopolitical considerations. The U.S. aims to control the world’s major shipping routes and key ports," said Huang Renwei, executive dean of the Fudan Institute for Belt and Road and Global Governance, noting that this involves restricting the global maritime activities of its strategic competitors, especially China.

This isn't the first attempt by the U.S. to bolster its domestic shipping industry through protectionist measures. The Jones Act, enacted in the 1920s after World War I, mandated that goods shipped between U.S. ports be transported on U.S.-built, -owned, and -operated vessels. While intended to revitalize the industry, the law was criticized for stifling competition, leading to higher prices and reduced innovation.

The disparity between U.S. and Chinese shipbuilding capacity is stark. In 2023, U.S.-made commercial ships comprised only 0.1 percent of the global total, compared to China's nearly 50 percent. U.S. shipbuilding capacity is less than one million tons, dwarfed by China's 40 million tons. Furthermore, U.S. labor costs are four times higher, and the industry faces a fragmented supply chain and outdated infrastructure.

Experts suggest that a genuine revival of U.S. shipbuilding would require significant investment and effort.

"If the United States wants to become a leader in commercial shipbuilding, that's going to take a lot of effort to rehabilitate shipbuilding yards, but also to train an army of workers who currently, maybe some years ago they used to work in the shipbuilding, but those skill sets have perhaps long been forgotten," said John Anthony Quelch, a British-American academic.

The proposed fees may shift public attention away from urgent domestic problems, but history has shown that monopolizing an industry by excluding competitors can only backfire in the end, according to experts.

Experts doubt viability of U.S. plan to revive shipbuilding by targeting China

Experts doubt viability of U.S. plan to revive shipbuilding by targeting China

French protesters taking to the streets nationwide say they are growing increasingly frustrated and angry about the future as they struggle with the rising cost of living, deteriorating educational facilities and poor public services.

Nationwide demonstrations erupted in France on Oct 17, with the government estimating that approximately 550,000 people had participated across the country, while organizers claimed the figure reached 800,000.

In many cities, the protests escalated into violent unrest. In Paris, vehicles were set ablaze and shops were vandalized, while public facilities in several other cities also sustained varying degrees of damage.

The mass protests were initially triggered by students dissatisfied with a lack of educational resources and the poor condition of school facilities.

They were later joined by groups such as farmers and urban residents frustrated by rising energy prices, the high cost of living and declining public services.

Last week, protests in Marseille, France's second-largest city, descended into widespread violence.

On Oct 22, authorities in the Bouches-du-Rhone department, where Marseille is located, announced a ban on all protests across the department, including the southern port city, effective Oct 24.

High school students in Marseille say rising living costs and deteriorating school conditions are among the reasons they have taken to the streets.

"The price of gasoline and life itself have become too expensive. We have to protest, for the future, for ourselves and for our lives in the future," said Pablo Marez, a high school student.

"Overcrowding in classes, rats in classes. Walls in classes just don't stand up anymore. The heating doesn't work. During summer, it was way too hot," said Jenna, another high school student.

Observers said the protesters' demands highlight a series of governance challenges facing France, including a fiscal crisis, pressure on the welfare system and political polarization. With the 2027 presidential election approaching, some protesters say they see no candidate capable of turning the situation around.

"Currently, I don't see anyone who is capable of changing the situation in a country like France. I don't believe the answer lies in turning to the extremes or to the extremist parties -- whether it's the extreme right or the extreme left. People are becoming increasingly angry. We saw this on Saturday, October 17, and unfortunately, things are likely to get even worse in two days," said Jerome Borgeot, a social worker who works with homeless people in Marseille.

French protesters grow increasingly disillusioned about future amid nationwide demonstrations

French protesters grow increasingly disillusioned about future amid nationwide demonstrations

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