Korean shipbuilders at center of US-China rivalry

SEOUL : Beijing struggles to weaken Washington’s push to revive American shipyards. Competition has intensified between the United States and China to strengthen cooperation with Korea’s shipbuilding sector, as the world’s two largest economies vie for maritime supremacy.

Amid Washington’s push to revive American shipyards with Korean investments and technologies, Beijing has begun extending an olive branch to shipbuilders here after previously warning them about their ties with U.S. partners.

China’s state-owned Global Times said in a column on Monday that Korea and China have different technological levels, cost structures and market positioning, which create room for mutually beneficial cooperation.

Despite the rivalry between the two countries’ shipbuilders to win global orders, the newspaper emphasized their complementary strengths, citing Korea’s expertise in designing high-end vessels and China’s mass production efficiency.

“South Korea still holds certain technological edge in manufacturing some key components, for which Chinese shipbuilders have strong demand,” it said.

“In green shipbuilding technology, joint research and development, shared testing data and coordinated participation in international standard-setting can reduce technological risks for both sides and accelerate commercial application.”

Global Times warned last July of the risks in Korea’s proposal to invest in U.S. shipyards in return for tariff cuts, claiming that the Make American Shipbuilding Great Again initiative could make Korea increasingly dependent on or even subordinate to U.S. interests.

The following month, the newspaper said that if Korea, the U.S. and Japan strengthen their cooperation in shipbuilding, economic outcomes would be uncertain and not necessarily profitable.

In addition, China’s Ministry of Commerce announced sanctions against Hanwha Ocean’s five U.S. affiliates in October, following the Korean company’s alleged support for the U.S. government’s investigation into Chinese competitors and the subsequent imposition of new port fees.

After the measure drew harsh criticism from U.S. Trade Representative Jamieson Greer, China decided in November to temporarily lift the sanctions for one year.

Both Hanwha and HD Hyundai have continued mass sales of engines to major Chinese shipyards. China has also relied heavily on Korean components to build high-end vessels.

Data compiled by the Korea International Trade Association showed that the economic value of Korea’s exports of ship engines and components to China reached $1.29 billion in 2025, up 24 percent from the previous year.

While Korea’s technologies have been used to reinforce U.S. naval forces, industry officials expect Washington and Beijing to intensify efforts to court Korean shipbuilders.

Source : Korea Times