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U.S. Navy Secretary John Phelan is advocating for dual-use shipbuilding with Japan and South Korea to boost maritime capacity and counter China’s expanding naval power.
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China’s shipbuilding industry, which integrates military features into commercial vessels, is a model for allied cooperation and strategic planning.
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The U.S. urges investment from Japanese and South Korean firms in American shipyards to rapidly expand production capabilities, particularly on the West Coast.
U.S. Navy Secretary John Phelan has announced plans to engage Japan in discussions around dual-use shipbuilding—developing commercial ships with potential military functions. Speaking with Nikkei Asia, Phelan underscored the importance of increasing joint naval capacity to sustain deterrence in the Indo-Pacific, especially amid China’s expanding maritime influence.
Inspired by China’s Dual-Use Model
Phelan cited China’s approach to shipbuilding as a reference point. In China, commercial vessels such as those operated by the Bohai Ferry Company are constructed to military specifications, making them easily adaptable for combat roles. These vessels may include reinforced decks for heavy equipment, built-in communication systems, and damage control features. Phelan emphasized that the U.S. and its allies must consider similar design philosophies to prepare for potential conflicts.
Enhancing U.S.-Japan Defense Industrial Cooperation
While in Japan, Phelan will meet with Defense Minister Gen Nakatani and visit the Japan Marine United’s Isogo Works shipyard. He expressed a desire to expand cooperation beyond maintenance and repair to include collaborative development of dual-use ships. Given the integrated operations between the U.S. Navy and the Japanese Maritime Self-Defense Force, he sees value in aligning shipbuilding strategies to improve readiness and interoperability.
Broadening Alliances with South Korea and Private Investment
Phelan’s Asia trip includes visits to multiple South Korean shipyards, where he will encourage investment in American facilities. Noting that East Coast shipyards are nearing capacity, he sees the West Coast as a viable location for expansion. Recent developments, such as Hanwha Group’s acquisition of Philly Shipyard and Hyundai Heavy Industries’ partnership with Huntington Ingalls, show growing interest in transpacific shipbuilding cooperation.
A Call to Close the Gap with China
The U.S. currently maintains a fleet of around 295 naval vessels, while China leads with over 370 and is projected to reach 425 by 2030. Backed by the world’s largest shipbuilding company, China’s industrial capacity far outpaces that of the U.S., which commands just 0.1% of the global shipbuilding market. Phelan stressed that without bold steps, the U.S. risks falling too far behind to catch up.
Time-Sensitive Action at a Critical Juncture
Phelan characterized the current period as a “tipping point” for U.S. naval strategy. A recent message from President Donald Trump highlighted concerns over deteriorating American warships, reinforcing the urgency to modernize and expand shipbuilding capacity. Phelan believes partnerships with key allies like Japan and South Korea are essential to reversing the trend.
Building Capacity Beyond U.S. Shores
Rather than attempting to match China’s production volume, experts like Matthew Funaiole from CSIS suggest a more strategic approach: increasing shipbuilding capacity within allied nations and focusing U.S. efforts on high-value vessels such as LNG carriers and icebreakers. Collaborating with Japan and South Korea, the U.S. aims to secure its maritime position in the Indo-Pacific through smarter, faster, and more resilient industrial strategies.
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Source: Nikkei Asia
