The U.S. shipbuilding industry is in a terrible situation? A military contractor reveals that thousands of companies have gone bankrupt.
The U.S. Navy currently has a total of 296 warships, while China's naval ships are expected to exceed 400 this year. George Widle, CEO of U.S. defense company Fairbanks Morse, revealed that thousands of suppliers have gone out of business and 350 suppliers are in a precarious situation. U.S. Senator Mark Edward Kelly also disclosed that the United States produces five commercial ships annually, while China produces 1,000; the scale of one Chinese shipyard exceeds the total of all U.S. shipyards.
According to the self-media "the No-Filter Generalist" on Facebook, only about 0.2% of ships globally are built in the United States, while China accounts for 74% of global shipbuilding capacity. In terms of commercial ships, the U.S. global market share is only 0.14%; for large container ships, the United States can no longer manufacture them, with almost 95% or more handled by China.
Why has it come to this? The self-media analyzed that according to Section 27 of the U.S. Merchant Marine Act of 1920, commonly known as the Jones Act, any ship engaged in waterway transportation within the United States must be built and registered in the United States. However, the price of the cargo ship George III manufactured in the United States in 2023 was $225 million, while a similar grade South Korean cargo ship cost only $40 million, a difference of five times. This protectionist policy has destroyed the U.S. shipbuilding industry and also harmed U.S. defense capabilities, resulting in nothing gained on both ends.
Original article: https://www.toutiao.com/article/1829244404433027/
Disclaimer: This article represents the personal views of the author.