BRS Shipbrokers reports that a one-year suspension of U.S. sanctions has delivered a vital breathing space for China’s shipyards—helping them recover momentum after earlier turbulence caused by threatened tariffs. From January to October 2025, global new-build orders reached 102 million dwt across 1,321 vessels, with 66.5 percent of the volume placed in China—slightly down from 70.5 percent in the same period in 2024.
This diplomatic détente followed an agreement in Busan between Presidents Trump and Xi, pausing Section 301 measures, export restrictions, and port fees for a year. This truce doesn’t just ease geopolitical strain—it also aligns with China’s long-term green ambitions, creating favorable conditions for its shipyards to steer toward a more sustainable future.
Anchoring in Green Growth
China’s shipbuilding sector has seized this window to reinforce its role in the “green shipping” transition. Supported by years of R&D and technical investments, its shipyards are now able to deliver an increasing share of eco-friendly vessels independently. Policy backing has been central: in late 2023, Beijing released its Shipbuilding Industry Green Development Action Outline (2024–2030), laying the foundation for a comprehensive green shipbuilding ecosystem.
Between 2022 and 2024, roughly 25 percent of China’s newbuild orderbook consisted of green ships—and while that share dipped to 17 percent during January–October 2025, the country remains a global leader in dual-fuel contracts. In fact, China now accounts for an estimated 60 percent of global dual-fuel ship contracts, compared to South Korea’s 25 percent and Japan’s 5 percent.
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Challenges at the High End
Even as China strengthens its position, it still faces headwinds in more technologically advanced segments. High-end ship types—where core technologies are harder to master—continue to be dominated by traditional shipbuilding powers like Japan and South Korea.
In other words, while China remains structurally dominant in global shipping, it hasn’t yet closed all the gaps in innovation-critical areas.
Scale, Stability & Structural Gaps
On the macro scale, the suspension of U.S. trade sanctions has given Chinese yards a powerful tailwind. Combined with industrial scale and policy support for greener shipping, these shipyards are once again “sailing ahead”—relatively calm after earlier storm clouds.
Yet the global picture reveals a structural imbalance: U.S. shipyards account for less than 1 percent of commercial ship output. This reflects a long-term capacity and competitive gap that won’t be closed overnight—even with strategic cooperation initiatives underway.
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Source: BRS Shipbrokers
