Staying Afloat: Why America Needs the Jones Act to Compete with China and What to Do Next​

Michael Roberts

External Source: Hudson Institute

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“Geopolitical competition between the United States and China has prompted broad policy reassessments in many industries associated with military and economic security. In no strategically important sector is China’s advantage over the US more pronounced than in the commercial maritime industry. Using extensive government support and other advantages, China has created a commercial shipping and shipbuilding powerhouse of extraordinary scope and scale. This gives Beijing unmatched control over the circulatory system that feeds our global economy—the ships, ports, and other aspects of these essential links in international trade. China’s commercial fleet (including ships owned in Hong Kong) is the largest in the world, numbering more than 10,000 large vessels and many thousands of small cargo and fishing vessels. Those vessels exert complete control over China’s domestic shipping markets;¹ push de facto control over waters that extend beyond the People’s Republic of China’s legal boundaries; harass US Navy, Coast Guard, and allied ships; and serve as a naval reserve that would provide crucial support in any conflict. With substantial purchases from customers in the US and Western-aligned countries, China’s commercial shipbuilding industry is now slated to produce more ships than the rest of the world combined. Billions, if not tens of billions, of dollars flow each year from these purchases to programs and shipyards that indirectly strengthen the People’s Liberation Army Navy (PLAN), which is increasingly competitive with the US Navy.”

The full report is available at Hudson Institute

Michael Roberts, Non-Resident Senior Fellow

• Acquisitions & Budget
• Force Design
• Industry & Innovation