[Source/Observer Network Zhang Jingjuan] Against the backdrop of U.S. President Trump's vow to "revitalize American shipbuilding," Japan and South Korea are seeking to assist the U.S. through shipbuilding technology cooperation to narrow the gap with China in this field, but China's dominant position will be difficult to shake in the short term.
According to a report by Hong Kong's English-language media, the South China Morning Post, on the 27th, Japan recently proposed assisting the U.S. in rebuilding its civilian and military shipbuilding industries, focusing on cooperation in icebreaker technology and naval vessel maintenance. Analysts believe that this strategic move will help address China's growing dominance in this area and mitigate the impact of the tariffs that the U.S. is about to impose on Japanese imports.
In addition, Japanese diplomatic sources revealed that not only Japan but also South Korea has proposed cooperation in the shipbuilding sector.
"Japan's proposal is likely to be attractive to the U.S."
The report stated that on the 25th local time, Prime Minister Shibuya Morihiko expressed a positive attitude towards U.S.-Japan cooperation in shipbuilding during a press conference held in Maizuru City, Kyoto Prefecture.
At the press conference, Shibuya Morihiko said that the U.S. intends to revitalize its shipbuilding industry, and "the Japanese government also hopes to provide support in the shipbuilding sector." He mentioned that Japan has significant advantages in icebreakers, which are one of the key areas for cooperation. The icebreaker he referred to is a special vessel designed specifically for navigation in ice-covered waters and breaking ice, typically used for polar research and operations in the Arctic or Antarctic.
Japanese "Akebono" Icebreaker Visual China
Analysts say that Japan will benefit significantly from such agreements because they not only help boost Japan's shipbuilding industry but also bring the U.S. and Japan closer together, potentially alleviating the impact of Trump's tariff policies, even against traditional allies.
Stephen Nagy, professor of international relations at Tokyo International Christian University, told This Week in Asia, a media outlet under the South China Morning Post, that the main purpose of the Japanese side is to offset the expected cost of tariffs.
The report states that the final tariff rate for Japanese imports into the U.S. has yet to be determined, but it is expected to be at least the benchmark rate of 10%, with higher rates for industries such as automobiles and electronics.
"Prime Minister Shibuya's proposal actually indicates that Japan is willing to bear part of the cost related to tariffs and is willing to take on more burden within the alliance," Nagy said.
Analysts pointed out that Japan's proposal is likely to be attractive to the U.S., as the U.S. realizes that China has become a major shipbuilding power, with far more shipbuilding than the U.S.
Currently, China produces 70% of the world's non-military vessels and holds 90% of the ship repair market share. According to data from the well-known international shipping research consultancy firm Clarkson, as of February this year, the unfinished order volume of U.S. shipyards accounts for less than 1% of the global total, while shipyards in China, Japan, and South Korea account for 63.62%, 12.33%, and 12.05%, respectively.
In the early 1990s, Japan accounted for about 50% of the world's shipbuilding output; today, this proportion has dropped to 10%. Concerns among the Japanese domestic community about their dependence on maritime capabilities on geopolitical rivals are increasing.
Nagy said that in recent years, many countries have allocated resources to other fields, resulting in the shipbuilding industry lagging far behind China. "They must significantly expand their scale."
Even if the U.S. "teams up" with Japan and South Korea, it will still take several years to see results.
Similarly, South Korea has recently expressed a desire to assist the U.S. in developing its shipbuilding industry.
In trade negotiations with the U.S., South Korea expressed hope to list shipbuilding as a key cooperation area to alleviate bilateral trade imbalances and help the U.S. rebuild its shipbuilding capacity.
Last week, U.S. Trade Representative Greer met with relevant personnel from the South Korean shipbuilding industry during his visit to South Korea to discuss issues such as the reconstruction of the U.S. shipbuilding industry, supply chain restructuring, and technological cooperation.
During his meeting with Hanwha Ocean representatives, both sides discussed solutions to enhance the competitiveness of the U.S. shipbuilding industry. Hanwha Ocean plans to transplant its smart production system to the U.S. shipyard acquired last December. A representative from South Korea stated that Hanwha Ocean hopes to become a strategic partner in the revival of the U.S. shipbuilding industry, not only conducting technology transfer and production infrastructure construction but also jointly achieving the re-emergence of the U.S. shipbuilding industry.
"Both Japan and South Korea possess existing shipbuilding capabilities, technologies, shipyards, skilled workers, and experience, which may allow them to expand their scale faster than the U.S.," Nagy said. However, he noted that it would still take several years to see results.
The report stated that even if a formal agreement is reached, it will take at least four to five years to turn design drawings into physical products.
Clearly, the Japanese government has focused on shipbuilding as a priority. The "Economic Security Promotion Bill" explicitly requires increased investment in the industry, promotion of technological development, and improvement of data infrastructure. Part of these measures involves using government funds to build new shipbuilding facilities and renovate those that have been abandoned.
In addition, Japan is studying ways to assist companies in building large shipyard facilities in other countries, including the U.S., to explore local markets.
The Japanese government views shipbuilding as an important source of domestic and international business, as it encompasses both military and industrial vessels.
According to a previous report by the Yomiuri Shimbun, Japan also plans to propose the establishment of a U.S.-Japan joint fund to revitalize shipbuilding, which will include investments in new technologies, such as the development of ammonia-fueled ships.
On March 24, 2024, former U.S. Navy Secretary Carlos Del Toro visited Hanwha Ocean Group and toured the "Chang Bogo"-class conventional submarine model. Hanwha Ocean
It is worth noting that while Trump was一心一意 "saving" the declining U.S. shipbuilding industry, he also planned to impose high "port fees" on Chinese-made ships.
On April 17, the U.S. Trade Representative Office (USTR) website published a Federal Register announcement stating that all ships built by China and owned by Chinese entities, as long as they dock at U.S. ports, will be charged according to the amount of cargo they carry. These fee measures will be implemented 180 days after the announcement, in two phases.
According to the fee details published in the announcement, starting October 14 this year, the U.S. will charge what it calls a "shipping service fee" of $50 per net tonnage for any ship operated by Chinese operators or owned by Chinese entities. This amount will increase by $30 annually over three years, reaching $140 per net tonnage by 2028.
In response to the U.S. suppression of ships built in China, on April 10, Chinese Foreign Ministry spokesperson Lin Jian responded at a regular press conference, stating that the development of China's shipbuilding industry is the result of enterprise technological innovation and active participation in market competition, making important contributions to global trade development and the stable and secure operation of global supply chains. Several American research reports show that the U.S. shipbuilding industry lost its competitive edge years ago due to excessive protectionism. Blaming China for its own problems lacks factual basis and runs counter to economic common sense. Unilateralist and protectionist practices by the U.S. are unpopular and will only drive up global shipping costs, disrupt global production and supply chain stability, harm the interests of various countries, and ultimately fail to revitalize America's shipbuilding industry.
Original article: https://www.toutiao.com/article/7509033678958658098/
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