US shot across China’s bow in shipbuilding could backfire as allies fall short

Though the US has unveiled a sweeping port fee proposal designed to hamstring China’s shipbuilding industry – the world’s largest by a wide margin – it may find its Asian allies unable to fill the vacuum in production that could result.

Although analysts have said it is too early to assess the specific impact this would have on the shipbuilding market, it is clear the US’ major East Asian allies – South Korea and Japan, the world’s second- and third-largest shipbuilders – could benefit from the tension. The magnitude of its repercussions, they added, will depend on the timing and scope of the plan as ratified.

“Compared to building shipyards in the US, it’s more feasible to outsource vessel orders to South Korea and Japan,” said Han Ning, general manager of the Singapore-based vessel transaction platform Shipbid.

The US has vowed to strengthen its partnerships with traditional allies, inviting trusted countries to invest in domestic shipyards and participate in the maintenance of military craft.