Source: Blog – Alliance for American Manufacturing

China’s shipbuilding capacity is 232 times greater than the United States. It’s time to right the ship.

The United Steelworkers (USW) joined with several other trade unions on Tuesday to officially file a “Section 301” petition urging the Biden administration to launch an investigation into China’s commercial shipbuilding.

USW International President Dave McCall officially unveiled the petition during a press conference alongside Sens. Tammy Baldwin (D-Wis.) and Bob Casey (D-Pa.), both of whom said they support the unions in their fight. Other unions signing onto the petition include the International Association of Machinists and Aerospace Workers, the International Brotherhood of Boilermakers, the International Brotherhood of Electrical Workers, and the Maritime Trades Department, AFL-CIO.

“The [Chinese Communist Party] has been relentless in their efforts to use commercial shipbuilding to dominate the full spectrum of global trade, choking out competitors, and it’s time for us to fight back,” McCall said Tuesday. “The U.S. was once a leader in this industry, but as our shipbuilding industry collapsed, our nation lost more than 70,000 shipbuilding jobs, not to mention all the secondary and indirect jobs as well.”

There’s no doubt that China is dominating global commercial shipbuilding while the U.S. has an almost non-existent presence. As McCall noted, China built more than 1,000 ships in 2023; the United States produced fewer than 10. Meanwhile, 25,000 domestic shipbuilding suppliers have left the market over the past 20 years.

That’s not just an economic challenge; it’s also a threat to national security. China’s Navy has already surpassed that of the United States, and our lack of domestic shipbuilding capacity is making us more reliant on China — the last three dry docks purchased by the U.S. Navy were supplied by China, McCall said.

Baldwin agreed, noting that because the United States does not have the robust ecosystem to build commercial vessels, it is harder to build ships for our national security needs. When we lose shipbuilding jobs, we also lose the knowledge and skills of the workers who built our ships — and that is something that’s difficult to replace.

Casey spoke bluntly about the need to counter China, arguing that “China is an economic adversary of the United States of America, full stop,” and “we should treat them that way.”

“We’ve got to crack down hard. Not just give speeches… we need to crack down hard on this regime, and hold this regime, and in particular President Xi, and hold his regime accountable,” Casey continued.

Along with appearing beside McCall and the other unions, Baldwin and Casey sent a letter to U.S. Trade Representative Katherine Tai urging her office to review the petition and initiate an investigation. They wrote:

Shipbuilding has a long and proud history in the United States. After World War II, the U.S. led the world in commercial shipbuilding. Today, our nation produces fewer than one percent of the world’s commercial vessels. While several factors have led to the domestic industry’s decline, unfair trade practices by the PRC—now the global leader in shipbuilding—have been a leading contributor to the decimation of America’s commercial shipbuilding capacity and the workers it employed. For just over two decades, the PRC has led a campaign of anti-competitive practices to dominate the global transportation supply chain. The PRC’s subsidization and industrial targeting strategies have come at the expense of American shipbuilders and shipyards, as well as American manufacturers of shipbuilding equipment and materials and their workers.

For just over two decades, the PRC has led a campaign of anti-competitive practices to dominate the global transportation supply chain. The PRC’s subsidization and industrial targeting strategies have come at the expense of American shipbuilders and shipyards, as well as American manufacturers of shipbuilding equipment and materials and their workers.

Also offering support for the petition was the Shipbuilders Council of America. President Matthew Paxton said in a statement:

Shipyard businesses in the U.S. operating under free enterprise compete aggressively for domestic commercial and government shipbuilding and ship repair contracts. However, because of China’s heavy subsidization of its commercial shipbuilding and ship repair sectors there has been no ability for private industry U.S. shipyards to compete for contracts to build or repair ships for international commerce. Indeed, as a direct result of China’s policies, preferences and practices in its commercial shipbuilding and ship repair industries, U.S. businesses big and small have exited this manufacturing sector significantly reducing the overall shipyard industrial base.

The SCA applauds this effort to place a spotlight on what has been a thoroughly state orchestrated industrial campaign by China to drive out global competition in shipbuilding and ship repair with the goal of controlling international shipping and the crippling of manufacturing businesses around the world, particularly in the U.S. This race to bottom for cheap built and repaired ships and below market rate
shipping, has led to a global dependence on China for these products and in certain instances the flow of international commerce.

The U.S. Trade Representative has 45 days to review the petition and decide whether to pursue a full investigation.

While administration officials will likely take time to review the petition, new polling data shows Americans are on board with rebuilding this vital industry. According to a poll we conducted with Morning Consult in December 2023, 82% of U.S. adults agreed that China’s dominance of global shipbuilding is concerning, while 76% said the use of Chinese-built drydocks to repair, maintain and retrofit U.S. Navy vessels is a threat to national security.

Likewise, 74% of those polled said they support U.S. government investment in the shipbuilding industry, with 72% citing national security as a reason to do so. And 81% agreed that it is important for the president to act to strengthen U.S. shipbuilding.

“The United Steelworkers and its allies in this trade case have identified a major threat to U.S. economic and national security. If we fail to rebuild America’s shipbuilding capacity, we give China an overwhelming strategic advantage with disastrous repercussions,” AAM President Scott Paul said in a statement. “Strong measures in response to this petition are an essential first step to rebuilding America’s maritime independence, and it’s an urgent one. The Biden administration must act now to level the playing field for our shipbuilders.”

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