Jarnews Desk
The United States had the largest navy in the world at the end of World War II. It was still one of the world’s leading shipbuilding powers in 1975. However, since then, the United States’ dominance has begun to wane, and despite government initiatives, the country’s shipbuilding industry has rapidly weakened towards the end of the century. China has seized this opportunity, and now there is a danger that the gap in naval capabilities between the two countries will widen even further.
US Navy fleet halved in four decades
In 1987, the US Navy had 583 ships, a figure that has fallen by almost half in less than four decades. By 2015, China’s fleet had almost caught up with the US. Five years later, China had 350 warships, compared to 293 in the US Navy.
Huge gap in shipbuilding
The gap between the United States and China in shipbuilding capacity is also huge. China currently produces more than half of the world’s total shipbuilding, both commercial and military, with South Korea and Japan also major producers. In 2025, Chinese shipyards were expected to build 1,700 ships, compared to just five in the United States.
The gap will increase in the coming days as well.
This gap is likely to widen further in the coming days. China wants to add 435 ships to its fleet by 2030, while the US plans to add 58 new ships by 2031, 15 of which will be ‘Trump-class’ warships. While some analysts consider China’s goal realistic, many consider the US plan unrealistic.
Initiative to restructure the shipbuilding industry
In this situation, initiatives have been taken to rebuild the shipbuilding industry in the United States. The ‘Ships for America Act’ of 2025 has various measures to subsidize the industry and increase domestic production, including the proposal to create a ‘Maritime Security Trust Fund’ of up to $20 billion. Last February, the Trump administration announced the ‘Maritime Action Plan’ to rebuild the maritime industry base, and investment commitments are being sought from allied countries such as South Korea.
The proposed “Golden Fleet” would see the “Trump-class” nuclear warships cost more than a decade to design, with the cost of the entire program estimated by the Congressional Budget Office to be $275 billion, with the first ship costing $23.4 billion. While the plan is not entirely feasible, its continued existence is expected to put a significant strain on the Navy’s budget.
The challenge is to keep the existing fleet operational.
The problem is not limited to the ability to build new ships—the United States is also struggling to keep its existing fleet operational. High costs and delays have led to a nearly 20-year maintenance backlog, forcing some ships to retire early. The fleet’s readiness rate fell to 68 percent in 2025, compared to the Navy’s goal of 80 percent. As a result, the goal of completing operations within six months is not being met.
The deteriorating condition of the USS Abraham Lincoln, the 326-day long mission of the USS Gerald R. Ford, and the recent power outage on the USS Benfold are seen as symptoms of this crisis.
Jones Act: An old cause of weakness
One of the reasons for the long-term weakness of the United States in shipbuilding is Section 27 of the Merchant Marine Act of 1920, also known as the Jones Act. According to this law, to transport goods from one port in the United States to another, a ship must be registered and built in the country, and there are American requirements for ownership and seafarers. Even if a ship is repaired abroad, it has to pay a 50 percent tax, which analysts say has long limited the competitiveness of the American shipbuilding industry.

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