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Experts believe that the U.S. suspension of measures targeting the Chinese shipbuilding industry, such as port entry fees, as part of a trade agreement with China will negatively impact efforts to rebuild the U.S. shipbuilding sector through cooperation with South Korea.

James Kim, Director of the Korea Program at the Stimson Center, a U.S. think tank, assessed on Dec. 12 (local time) at a seminar hosted by the Korea Economic Institute (KEI) that the U.S. decision to suspend enforcement of measures aimed at China's shipbuilding industry is "not helpful" for South Korea-U.S. shipbuilding cooperation.

Kim emphasized the "importance of demand" for vessels to be built through South Korea-U.S. cooperation, pointing out that if the need for shipping companies to build ships in South Korea or the U.S. decreases, they are more likely to place orders with China, which has a competitive advantage in price.

The U.S. had implemented a series of measures against China, including port entry fees for Chinese-made vessels starting Oct. 14, viewing China's growing dominance in the maritime, logistics, and shipbuilding industries due to its unfair policies and practices.

These measures were expected to serve as an incentive for shipping companies to order South Korean-made vessels or vessels to be built in the U.S. through investment cooperation, instead of Chinese-made vessels which they had chosen for their price competitiveness. However, the U.S. recently postponed the implementation of these measures for one year as part of a U.S.-China summit agreement.

Kim stressed the long-term nature of shipyard investments and vessel construction, which take years, and highlighted the importance of sustained demand for vessels to be built in the U.S. and the durability of government support policies.

"The long-term impact on the industry itself is more important than what the suspension of port entry fees means in the short term. This creates uncertainty," he said.

"Companies will have more difficulty figuring out how to proceed with their businesses, and may hesitate to make large investments in the short term, choosing to wait and see how things unfold," he predicted. "If there is no certainty that these measures will be maintained, there will be more delays (in investment)."

He also noted the higher costs of building ships in the U.S. compared to South Korea and argued that if the U.S. government truly wants to build ships in the U.S., it should allow tariff exemptions on the steel required for shipbuilding.

Experts speak at a seminar on South Korea-U.S. shipbuilding cooperation hosted by the Korea Economic Institute (KEI) in Washington D.C. on Dec. 12 (local time). From left, Ellen Kim, Director of Academic Affairs at KEI; Dr. Lydia Rol; and James Kim, Director of the Korea Program at the Stimson Center. 2025.11.12

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