China's shipbuilding industry dominates global capacity, driven by strong commercial and military vessel production. Recent research from the Center for Strategic and International Studies indicates that foreign buyers significantly contribute to China’s naval expansion by supporting shipyards closely linked to its defense sector. The report highlights that 40% of commercial output comes from a small percentage of shipyards directly tied to military production. Additionally, foreign partnerships in joint ventures and technology transfers have advanced China's capabilities and infrastructure, thus providing an edge in maritime strength and modernization efforts.
Due to the close ties between China's commercial shipbuilding, which is largely supported by foreign buyers, and China's military shipbuilding, foreign firms have funneled billions of dollars of revenue into entities that are central to China's naval modernization.
The authors found that a disproportionate share of China's commercial shipbuilding occurs at shipyards that are closely intertwined with the country's sprawling defense industrial base.
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