China Is Still the King of Shipbuilding, Data Shows

China is likely to maintain its dominant market share in global shipbuilding this year, according to its latest government data.

From January to November 2023, the Chinese shipbuilding industry's output climbed 12.3 percent year-on-year to 38.09 million deadweight tons, accounting for more than half of the world's total, according to China's Ministry of Industry and Information Technology.

Chinese shipbuilders also commanded global orders with 134.09 million deadweight tons, or 53.4 percent of the world's market share, over the same period, a 29.4 percent year-on-year increase, according to the official statistics.

The numbers pointed to a strong showing for China's various maritime sectors in 2024, with the trend in increased shipbuilding output also facilitating a strategic expansion of the nation's naval power.

Last year, some of China's largest government ships were involved in flare-ups with the Philippines in the South China Sea and Japan in the East China Sea, underscoring Beijing's strategy to use its growing sea power to coerce its neighbors.

Market watchers expect China's shipbuilding sector to not only lead in output but also increase exports this year.

Two major shipbuilders now operating at total capacity were holding orders into 2027, China's state-backed China Daily newspaper said in late December.

In 2023, China also overtook Greece to become the world's largest commercial shipowner, with 249.2 million gross tons and 15.9 percent market share, according to the London-based shipping service Clarksons.

Greek ships, however, still carry more cargo than do their Chinese-flagged counterparts, its August report said.

In addition to commercial shipbuilding, China's maritime ambitions have benefited the People's Liberation Army Navy.

In an annual assessment released last fall, the U.S. Defense Department estimated China's naval fleet would grow from 395 ships in 2025 to 435 by the end of the decade. Meanwhile, the U.S. Navy's fleet was projected to decrease to 285 ships by 2025 and slightly rebound to 290 by 2030.

The U.S. fleet remains larger by overall tonnage, with 11 operational nuclear-powered aircraft carriers versus China's three conventionally powered flat-top warships. But China's navy already leads by hull count, and if the current trajectory holds, its battle force will also surpass the American fleet by tonnage.

Additionally, its submarine numbers were expected to grow to an estimated 80 boats by 2035, in contrast to the U.S. subsurface fleet's projected 57 boats by the same year.

The expansion of China's naval fleet includes not only warships and submarines but also the incorporation of commercial vessels into its overall defense strategy.

A 2016 law allows China's commercial fleet, including roll-on and roll-off ferries and its massive fishing fleet, to be used for national defense.