Japan and US mull joint fund to revive shipbuilding and repair
The backlash against China’s shipyard dominance could turn fortunes around for Japanese shipyards
(Source: Hitachi Zosen)
Japan is preparing to unveil a sweeping new directive to revitalise its shipbuilding and repair industry, as part of wider strategic and economic coordination with the United States.
Expected next month, the directive will utilise powers under the 2022 Economic Security Promotion Act to reopen dormant domestic docks, fund new construction facilities, and extend investment to overseas yards. Central to the plan is a proposed Japan–US Shipbuilding Revitalisation Fund, currently under discussion, which would see Japanese yards bidding to build car carriers and LNG vessels for American clients, as well as support US yard infrastructure.
The initiative aligns with growing Japan–US efforts to establish a China-independent maritime supply chain. Discussions also include potential collaboration on naval assets and icebreakers, reinforcing bilateral defence and industrial links.
China currently dominates the global shipbuilding landscape, with around 70% of newbuild capacity and close to 90% of repair volume. Japan’s share has declined sharply from 50% in the 1990s to just 10% today.
The Trump administration is reportedly preparing a new set of tariffs, including increased port fees on Chinese-linked vessels, as part of broader measures to counter China’s maritime influence. Japan and South Korea have both ramped up US engagement in response.
