11 April 2022

In the Shadow of Warships

Matthew P. Funaiole , Brian Hart, Joseph S. Bermudez Jr.

Given CSSC’s lack of transparency and its central role in supporting the PLAN, foreign companies should exercise more caution when engaging with it and other Chinese shipbuilders. For democracies, especially those in the region that must weather the brunt of China’s rising assertiveness, these ties are more than just worrying. They present a tangible threat to national security.

There is, however, a silver lining. South Korea and Japan are the leading alternatives to China in the global shipbuilding industry. Both are open and transparent democracies that are allied with the United States. Policymakers in Washington should explore opportunities to incentivize foreign companies away from China and toward partnerships with South Korean and Japanese alternatives. The shift will not be easy or immediate. Short-term capacity issues will arise. But in managing hard choices vis-à-vis China, especially those critical to national security, the United States should be prepared to steer the lead ship.

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