Scott Paul, president of the Alliance for American Manufacturing (AAM), stated that China’s market dominance in shipbuilding is harming the U.S. shipbuilding industry. Paul shared his statement during a June 26 hearing titled "From High Tech to Heavy Steel: Combatting the PRC's Strategy to Dominate Semiconductors, Shipbuilding, and Drones."

"To be clear, Beijing seeks nothing short of dominating global commerce," said Paul, according to Select Committee on the CCP. "This dominance in the market has a detrimental effect on shipbuilders in all other countries, including the United States. The economic impacts of these unfair trade practices and shrinking share of global shipbuilding in America include the stunning exit of 20,500 domestic shipbuilding suppliers over the past several decades."

According to Paul's testimony, China has been advancing its shipbuilding capabilities, which poses a threat due to the fact that 80% of global trade occurs through ocean shipping. Paul said China is outpacing the U.S. on shipbuilding, citing statistics including, "The U.S. produces 10 oceanic commercial vessels per year, while China produces over 1,000"; "China controls over half the world’s shipbuilding and began construction on nearly 1,800 large oceangoing vessels in 2022"; and "A briefing slide by the U.S. Navy reveals that China’s shipbuilding capacity is 232 times greater than our own." According to Paul, China is also ahead of the U.S. in terms of shipyard capacity.

Alliance for American Manufacturing President Scott Paul | americanmanufacturing.org

Paul emphasized that China’s rise in shipbuilding has "significant implications for our national security." He noted that the U.S. supply chain for shipbuilding is at risk due to an "aging fleet," with 175 vessels that are around 30 years old on average, and the U.S.'s "dependence on foreign shipbuilders." He added that the last three dry docks purchased by the U.S. Navy were from Chinese sources and highlighted that the U.S. Government is buying Chinese-made ships to meet demands of the U.S. Maritime Administration’s Tanker Security Program. According to Paul, China currently has the "world’s largest maritime fighting force, operating 234 warships to the U.S. Navy’s 219."

Paul stated that AAM "strongly supports the United States Trade Representatives’ Section 301 investigation into China’s maritime, logistics and shipbuilding sector." This investigation was spurred by a petition filed in March 2024 by United Steelworkers (USW) and a coalition of labor organizations.

According to a report from the Center for Strategic and International Studies (CSIS), China's "massive" shipbuilding capacity gives it an advantage over the U.S., particularly if China were to engage in a war lasting longer than several weeks. The report said China would be able to repair and replace damaged ships much more quickly than the U.S., adding it is unlikely that U.S. could meaningfully expand its domestic shipbuilding capacity in the near future but could rely more heavily on allies such as Japan and South Korea for repairs.

Paul serves as president of AAM, which is a partnership between America’s leading manufacturers and United Steelworkers union established in 2007, according to AAM's website. Paul and AAM have worked to make American manufacturers a high priority through "effective advocacy, policy development, and data-driven research."