French media: China creates the world's largest shipbuilding company, Japan and South Korea are following closely

The French weekly magazine "Le Point" website reported on Tuesday (0812) that, as the trade war with Washington is intensifying, Beijing will create the world's largest shipbuilding company by merging China State Shipbuilding Corporation and China Shipbuilding Industry Corporation.

A report published on the international edition of the "Le Point" website stated that in order to compete with the United States, Beijing will complete the merger of two state-owned shipbuilding companies this weekend to create the world's largest shipbuilding company. As reported by the Wall Street Journal, this move aims to establish a leading position in a field where Washington has fallen behind.

This new Chinese giant will absorb both companies: China State Shipbuilding Corporation, which mainly deals with commercial vessels (cargo ships, fishing boats, cruise ships, tankers, etc.), but also provides warships for the Chinese Navy, especially amphibious assault ships; and China Shipbuilding Industry Corporation, which built the magnificent 305-meter-long aircraft carrier "Shandong."

The merger costs 1.6 billion USD, and China hopes to use the huge scale of the new company to reduce costs to cope with the trade war initiated by Donald Trump. Matthew Funaiole, an analyst at the Center for Strategic and International Studies in Washington, explained to the Wall Street Journal that this is a "key step in China's long-term strategy to dominate the global shipbuilding industry." The Chinese government also hopes to better meet the needs of the navy and develop more advanced equipment.

Before the merger, these two companies together accounted for 17% of the global market share. After the merger, Beijing expects to be able to produce more than 530 ships, with a total deadweight tonnage of 54 million tons. Annual revenue is expected to reach about 18 billion USD.

Japan and South Korea are catching up

Facing China's dominance, the United States is trying to catch up. According to United Nations data, in 2024, Chinese ships accounted for more than half (55%) of the global market, while the U.S. market share was less than 0.05%. The U.S. Navy said that China's shipbuilding capacity is 232 times that of Washington.

However, this does not mean that China's shipbuilding industry is smooth sailing. Yangzijiang Shipbuilding, based in Singapore, received only 14 ship orders in the first half of 2025, compared to 126 in 2024.

In fact, the tariffs imposed by Donald Trump on Chinese-made ships have opened the way for other emerging markets. Therefore, Japanese and South Korean competitors are regaining market share.

In June this year, Imabari Shipbuilding and Yukito Higaki, president of the Japan Shipbuilding Association, said that Japan hopes to increase its market share from the current 9% to 20% by 2030, "to counter China and South Korea."

The ruling Liberal Democratic Party expressed concern, saying, "If we do not take action now, Japan may completely lose its shipbuilding industry, just like Europe and the United States." In the 1990s, Japan was one of the leaders in the shipbuilding industry, accounting for about half of the global annual output.

Original: www.toutiao.com/article/1840303981039626/

Statement: This article represents the views of the author.