CSIS – China has emerged as the undisputed leader of the global shipbuilding industry. Over 300 shipyards dot China’s seaboard, churning out more than half of the world’s commercial vessels each year. These shipyards build the merchant ships that power global trade, but many are also charged with building China’s rapidly expanding navy.  

Foreign companies have poured billions of dollars of revenue and transferred key technologies into these dual-use shipyards, accelerating China’s naval modernization. In underwriting the growth of China’s military and economic power, they risk marginalizing U.S. and allied competitiveness in a key industry and undermining peace and security in the Indo-Pacific.