- New Japan-US working group to boost competitiveness in global shipbuilding.
- The agreement aims to counter China’s 70% dominance in shipbuilding orders.
- Joint investments are planned to modernise and expand shipyards.
Japan and the United States are gearing up to sign a memorandum aimed at boosting their shipbuilding capabilities, coinciding with U.S. President Donald Trump’s visit to Japan starting Monday, as reported by The Yomiuri Shimbun. This agreement is designed to enhance maritime security and competitiveness for both nations, especially in light of China’s position as the world’s largest shipbuilder by tonnage. The signing is expected to take place between Land, Infrastructure, Transport and Tourism Minister Yasushi Kaneko and U.S. Ambassador to Japan George Glass, reports The Japan News.
Establishment of Japan-US Shipbuilding Working Group
The draft outlines the creation of a “Japan-U.S. shipbuilding working group” to invigorate and modernise their shipbuilding sectors. This group will foster collaboration between Japanese and American companies, focusing on investments in shipyard construction and upgrades to boost efficiency and global competitiveness.
Strategic Investments and Shared Industrial Goals
Shipbuilding cooperation is part of the broader Japan-U.S. tariff negotiations, in which Japan pledged to invest $550 billion (about ¥80 trillion) in the United States. The draft states that both governments recognise “that a strong and innovative shipbuilding industry is vital to the economic security, strength, and competitiveness of the maritime sector and the industrial resilience of both nations.”
Countering China’s Growing Market Share
China’s grip on the global shipbuilding market is tightening, with its share of orders projected to exceed 70% in 2024, according to Japan’s transport ministry. In contrast, Japan’s share has dwindled to just 8% this year. Both Tokyo and Washington are worried that relying more on China for shipbuilding could jeopardise maritime logistics and defence readiness during crises.
Plans for Standardisation and Technological Integration
To enhance compatibility, the memorandum suggests standardising vessel designs and components. This would facilitate smoother technological advancements, allowing U.S. shipbuilders to create parts based on Japanese designs. The framework also envisions shipyards in both countries being able to repair and supply parts for each other’s vessels. Additionally, the draft highlights collaborative efforts to integrate advanced technologies like artificial intelligence to enhance vessel design and functionality.
Strengthening the Workforce and Boosting Industry Resilience
Japan and the U.S. are teaming up to tackle workforce challenges by rolling out programs aimed at recruiting and training the skilled workers that the shipbuilding sector desperately needs. This partnership is all about ensuring that both countries can keep their shipbuilding industries sustainable and at the cutting edge of technology.
Expanding Cooperation on Critical Minerals
But that’s not all! Prime Minister Sanae Takaichi and President Trump are also set to sign a new memorandum focused on securing supplies of essential mineral resources, including those rare earth elements. This agreement will promote investment in joint development projects and help diversify supply chains. Japan and the U.S. are determined to create secure supply networks for these critical materials that are independent of China, especially since China has been tightening its grip with export restrictions on rare earths.
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Source: The Japan News
