- The New White House Office of Shipbuilding Announced.
- Trump Proposes Tax Incentives to Boost US Shipbuilding.
- China’s Shipbuilding Dominance Spurs US Policy Shift.
During a Capitol Hill speech, President Donald Trump urged the renaissance of US shipbuilding, both commercial and military, as part of initiatives to counter China’s dominance in the sector, reports msn.
New Shipbuilding Initiative Announced
“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,” Trump said in his speech on Tuesday evening. “We used to make so many ships, we don’t make them anymore very much.”
China’s Leadership in Shipbuilding
China now owns the world’s biggest shipbuilding industry, accounting for over half of the world’s merchant ships. The Office of the US Trade Representative pointed out in a report recently that China has made a significant targeting of the maritime industry and has gained substantial market share.
To respond to this, the Trump administration is weighing new charges on Chinese-made ships and cranes arriving in the US, as The Wall Street Journal reports.
Challenges to Reviving US Shipbuilding
Industry leaders question the possibility of reviving US shipbuilding soon, attributing this to exorbitant labour and raw materials costs. In recent years, China has moved ahead of Japan and South Korea to dominate the industry in both price and industrial know-how.
Plans to Take Back the Panama Canal
Aside from the shipbuilding project, Trump also declared plans to “reclaim” the Panama Canal, a vital sea route linking the Atlantic and Pacific Oceans.
A consortium led by BlackRock has agreed to take control of major ports along the waterway from a Hong Kong conglomerate, marking a strategic bid to establish US dominance over international shipping routes.
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Source: msn
