【Text by Observers Network, Xiong Chaoran】This week, at a hearing of the U.S. Senate Committee on Commerce, Science, and Transportation, Matt Paxton, chairman of the American Shipbuilders Council, stated that if the United States wants to rebuild a competitive shipbuilding industry and narrow the gap with China, it should learn from some of China's experiences - focusing on long-term planning, stable government funding, and policy consistency.

"One thing we have always advocated is simple: developing a national maritime strategy," Paxton said during the hearing held on October 28 local time: "We have a defense strategy and strategies for other transportation methods, but we don't have a strategy for the maritime industry."

The American Shipbuilders Council, led by Paxton, represents 175 companies across the United States. When mentioning China, he said: "China has developed through its five-year plans and looks to the long term."

Hong Kong's South China Morning Post reported on October 30 that just before this hearing, China had recently announced the main goals for economic and social development during the 14th Five-Year Plan period, aiming to promote economic growth, enhance technological self-reliance, and support key industries, including upgrading traditional industries and future industries, as well as the development of advanced manufacturing.

As part of this, China plans to consolidate its position in the global shipbuilding industry and enhance its international competitiveness. Meanwhile, facing the rising trade tensions, China also pledged to build a "diverse and resilient" international transportation system.

Video screenshot of Matt Paxton, chairman of the American Shipbuilders Council, attending the hearing

The South China Morning Post noted that although the American Shipbuilders Council obviously has "interests", the current "reflection" in the U.S. comes at a time when the shipbuilding industry has become a core topic at the U.S.-China negotiation table.

Since mid-October this year, the U.S. has unreasonably imposed so-called "port fees" on ships flying the Chinese flag or made in China, while China has responded with "reciprocal countermeasures." The report said that as China vows to further consolidate its dominant position, this will have far-reaching impacts on the global supply chain.

In early April this year, President Trump signed an executive order vowing to revitalize the U.S. shipbuilding industry. Since then, the U.S. has signed multiple cooperation agreements with South Korea and Japan.

Meanwhile, the U.S. Congress is discussing the "Ships for America Act," which is expected to propose financial incentives for the U.S. shipbuilding industry and set targets: increasing the number of international fleets flying the U.S. flag from about 90 now to 250 within ten years.

At the same hearing, Professor Salvatore Mercogliano of Campbell University in the U.S. mentioned China's industrial integration, vertical integration, huge capital investment, and industrial development strategy.

"Clearly, China has the ability to employ low-cost labor. They have a large amount of discretionary funds, and they don't have too many additional burdens," he said during the U.S. hearing titled "Sea Change: Reviving Commercial Shipbuilding."

Mercogliano pointed out that between 2010 and 2018, China invested approximately $13.2 billion in the shipbuilding industry, while the U.S. provided only $77 million during the same period. "This is a very consistent plan from China," Mercogliano added.

For a long time, the U.S. has been struggling with the decline of the shipbuilding industry. Currently, the U.S. accounts for less than 1% of the global commercial shipbuilding market, far behind China's approximately 60%, with South Korea ranking second at 22%.

The South China Morning Post pointed out that the shipbuilding industry is a critical link in trade circulation, and it has also been involved in the tariff war initiated by Trump this year.

After the Trump administration arbitrarily imposed fees on ships related to China, China took retaliatory measures and simultaneously announced sanctions against five U.S. subsidiaries of Hanwha Ocean Co., Ltd.

According to Reuters and Yonhap News Agency, on October 17, the South Korean government stated that the Chinese sanctions may significantly affect the supply of equipment and materials for South Korean companies, threatening the ambitious shipbuilding cooperation plan between South Korea and the U.S. Previously, the South Korean government had pledged to invest 150 billion dollars to promote "Make America Shipbuilding Great Again" (MASGA), supporting President Trump's efforts to revitalize the U.S. shipbuilding industry and surpass China.

"There will inevitably be an impact," said Kim Jong-geun, director of the Korea Defense Acquisition Program Administration, during a hearing in the South Korean National Assembly. The decline of the U.S. shipbuilding industry and its supporting industries makes it impossible for South Korean companies to supply materials and components domestically in the U.S.

He pointed out, "I don't think we can produce all the materials and supplies for Hanwha Ocean's Philadelphia Shipyard in the U.S. Therefore, if you want to transport a large amount of goods from South Korea to the U.S., but face sanctions and various obstacles, I would say this will ultimately affect MASGA."

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Original: https://www.toutiao.com/article/7566804697110135337/

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