US shipbuilding faces capacity crisis amid China's naval expansion

The United States is facing a critical shortage in shipbuilding capacity and infrastructure, creating a significant gap compared to China’s rapidly expanding naval fleet. While China is expected to grow its naval force to approximately 435 ships by 2030, the U.S. currently operates 294 ships with a target of 381 by 2042.

Domestic production in the U.S. is hindered by industrial bottlenecks, including a lack of physical space and a shortage of specialized, nuclear-certified technicians. Currently, only two shipyards—Newport News Shipbuilding in Virginia and General Dynamics Electric Boat in Connecticut—are capable of building nuclear-powered vessels. These facilities are operating at maximum capacity, leading to delays in the Ford-class aircraft carrier program, such as the USS Doris Miller, which has seen its delivery pushed to 2034.

To address these challenges, the U.S. administration has explored a “Finland Model” of allied shipbuilding. This approach suggests constructing certain vessels in select foreign shipyards to bolster the fleet while simultaneously investing in the American maritime industrial base. This multilateral cooperation aims to narrow the fleet-size gap with China and mitigate the effects of domestic production delays.