Full Steam Ahead China's Rise in the Global Shipbuilding Industry

China’s shipbuilding industry currently commands over half of the global market, driven by strategic government policies, sizable infrastructure investments, and competitive pricing. Its state-owned enterprises benefit from policy initiatives such as “Made in China 2025,” the Belt and Road Initiative, and the combining of military and civilian economic infrastructure and technology development goals that have enabled production of advanced ships such as LNG carriers, cruise liners, and naval vessels. The article examines the state of Chinese shipbuilding and notes that Chinese state support plays a pivotal role in bolstering the domestic shipbuilding sector. Among other things, state subsidies and preferential tax policies have reduced operating costs and encouraged continuous expansion allowing Chinese firms a financial advantage over competing shipbuilding nations like South Korea and Japan. While several headwinds exist, including overcapacity, dependence on foreign technology, and rising competition from South Korea, Japan, and emerging markets, this article argues that the Chinese shipbuilding sector is capable of meeting these and other potential challenges owing to strong state support in the form of subsidies for expansion and technological change.