Trump seeks revival of US shipbuilding to counter China

US PRESIDENT Donald Trump has called for the resurrection of US shipbuilding for commercial and military vessels in a Capitol Hill address, a move aimed at countering China’s dominance of the industry.

“I’m announcing tonight that we will create a new office of shipbuilding in the White House and offer special tax incentives to bring this industry home to America where it belongs,” he said on Tuesday (Mar 4). “We used to make so many ships, we do not make them anymore very much.”

China has the world’s largest shipbuilding sector, producing more than half of the merchant vessels globally, while the US industry has been in decline. The Asian nation has targeted the maritime sector for dominance, winning market share with “dramatic effect”, the Office of the US Trade Representative said in a plan last month proposing fees on Chinese commercial ships.

The Wall Street Journal reported earlier that the Trump administration was preparing measures to boost American shipbuilding, including raising revenue through fees on Chinese-built ships and cranes entering the US.

Industry observers have been sceptical of America’s ability to quickly revive its shipbuilding sector, citing high labour and raw material costs. China’s industry has, in recent years, competed with Japanese and South Korean companies to emerge as the leader in price as well as industrial know-how.

Separately, Trump said his administration will be “reclaiming” the Panama Canal, a key global maritime conduit that allows ships to sail from the Atlantic to Pacific ocean. A BlackRock-led consortium has agreed to buy control of key ports near the waterway from a Hong Kong-based conglomerate. BLOOMBERG