[Source/Observer Network Qi Qian] On April 9 local time, US President Trump signed an executive order, authorizing various government agencies to formulate a plan to revitalize the domestic shipping industry within up to seven months, while instructing the "Department of Government Efficiency" to investigate why the US Navy builds ships so slowly.

According to reports by US media Bloomberg and The Wall Street Journal, revitalizing the American shipping industry and countering China's dominant position has become a consensus among both parties. William Herenagan, a former official of the Biden administration and current researcher at the Council on Foreign Relations, warned that China's shipbuilding industry will grow into a "geopolitical chip" like the US dollar within ten years, at which point, "the global geopolitical balance will change."

On the same day, Trump authorized White House Security Advisor Waltz as well as the Department of Defense, Commerce, Labor, Transportation, and Homeland Security to jointly develop a "Maritime Action Plan" before November this year, outlining new ways to invest in the shipbuilding industrial base.

Meanwhile, the "Department of Government Efficiency" will conduct a 45-day investigation into the shipbuilding industry of the Navy and Coast Guard, "to improve efficiency and effectiveness."

American political news website Politico said that this executive order would make the controversial and highly influential "Office of Government Efficiency" deal with some of the "most expensive and thorny" projects of the US military. Both the Biden administration and the Trump administration have tried to address the decades-long delays in naval ship construction and project budget overruns, but with little success.

"We will invest a lot of money in shipbuilding," Trump said in a video interview just before signing the executive order, "We used to build a ship every day before, now we can hardly build one in a year."

Video screenshot showing Trump signing the executive order aimed at revitalizing the American shipping industry on the 9th.

In addition, part of this executive order aligns with a proposal previously put forward by the Office of the United States Trade Representative, which involves imposing multi-million-dollar fees on ships built in China entering US ports. However, the executive order expands the scope of fee collection to include cargo ships arriving by sea via Mexico or Canada and clearing customs at inland locations in the US.

The report states that this executive order sets out a framework for how the US government plans to rebuild the foundation of its shipping industry to counterbalance China's dominance in shipbuilding, port crane manufacturing, and its rapidly growing naval and merchant fleets.

The Wall Street Journal reported that officials in the US shipping industry said that this executive order is deeply influenced by Waltz. Last year, as a congressman, Waltz co-sponsored a bipartisan bill - the "Shipbuilding and Port Infrastructure Promotion Act for Prosperity and Security in America" - aimed at promoting the development of the US shipbuilding industry and expanding the commercial fleet flying the American flag.

Regarding this, Democrat William Herenagan said that countering China's rise at sea is a rare example of bipartisanship. He believes that China's shipbuilding industry will continue to develop rapidly. According to his estimates, within ten years, maritime trade will not be possible without Chinese vessels.

"If China develops similar capabilities to the US dollar, exerting influence in maritime trade, the balance of geopolitical power may change." He渲染said that China would then gain the same "geopolitical chips" as the US. The Wall Street Journal mentioned that the US dollar's dominant position in international finance enables the US to impose financial sanctions.

Data shows that in 2025, China's share of the total annual production of shipyards globally exceeds 50%. Bloomberg chart.

Bloomberg pointed out that in just twenty-five short years, the proportion of shipbuilding volume by Chinese shipyards in global commercial shipping capacity has grown from less than 5% to more than 50% this year.

The Wall Street Journal also mentioned that China is the largest producer of ships in the world. Data shows that measured by capacity, Chinese shipyards have nearly 29% of the world's container ships and 70% of the ordered container ships. At the same time, China also dominates in the construction of containers and shore cranes.

After taking office, the Trump administration sought to increase shipbuilding capabilities and revitalize the US shipbuilding industry. In late February, the US Trade Representative's Office came up with a "devious scheme," announcing plans to impose a so-called "additional service fee" of up to $1.5 million on ships made in China entering US ports.

This proposed plan caused a huge stir throughout the shipping industry and among broader supply chain participants. During the public consultation period, the USTR online message board was "overrun" by opposition voices. According to US media reports, almost all opinions pointed out that this proposal would cause logistical chaos and damage to US businesses and the broader economy.

At the public hearings held on March 24 and 26, American industry representatives clashed fiercely with lawmakers.

Reportedly, dozens of commodity exporters issued warnings that this plan would push up inflation rates, cause severe supply chain disruptions, and drive companies to bankruptcy overnight. Hundreds of trade associations and other stakeholders warned the government through comments and testimonies, stating that the US cannot win this economic war and will only put American companies using Chinese ships in a difficult situation.

Earlier this week, Andrew Abbott, CEO of American Maritime Carrier Atlantic Container Lines (ACL), warned that if the fee plan were implemented, the company would go bankrupt immediately. He also stated, "I chose Chinese shipbuilding because when we went to American shipyards, they told me they couldn't build a ship in seven years... The shipyards we talked to are all reserved by the military and cannot build commercial ships."

Earlier this week, US Trade Representative Jamieason Greer told Congress that the government is revising the plan based on public feedback.

This article is an exclusive contribution from the Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7491510429009691172/

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