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With US President Donald Trump having kicked off his visit to Asia, new collaborations in shipbuilding with Japan and South Korea are set to advance amid ongoing port-fee disputes with China, as Washington seeks to counter Beijing’s dominance in the maritime sector. The US government has committed to reviving its nearly defunct shipbuilding industry through strategic partnerships, with key allies Japan and South Korea – major shipbuilding countries – welcoming the initiative with open arms. During Trump’s three-day state visit to Japan, which started on Monday, the countries plan to sign a memorandum aimed at jointly enhancing their shipbuilding capabilities, including the formation of a working group, The Japan News reported. The agreement recognises “that a strong and innovative shipbuilding industry is vital to the economic security, strength and competitiveness of the maritime sector and the industrial resilience of both nations”, the report said, quoting the memorandum draft. The plans include collaborating on shipyard investment, standardising vessel designs and components, advancing technology and enhancing personnel recruitment and training. Both countries also anticipate shipbuilders being able to perform vessel repairs for each other and supply spare parts, the report added. “President Trump’s visit will be an ideal opportunity for the two countries to further strengthen the Japan-US alliance,” Japan’s Ministry of Foreign Affairs said in a statement on Wednesday. The US has also developed a similar shipbuilding cooperation plan with South Korea, with major Korean shipbuilders partnering to counter China as a strategic rival. HD Hyundai Heavy Industries, one of Korea’s largest shipbuilders, signed a memorandum of agreement with Huntington Ingalls, a major US military shipbuilder, to explore joint investments and pursue collaborations in naval auxiliary vessel programmes, the US company said in a statement on Sunday. “We intend to actively participate in the US’ new maritime vision and policies, particularly the initiatives for maritime dominance and prosperity, including the construction of a next-generation fleet spearheaded by the US Navy and the rebuilding of shipyards,” HD Hyundai’s chairman, Chung Ki-sun, said on Monday at the Asia-Pacific Economic Cooperation CEO Summit held in South Korea’s coastal city of Gyeongju, local media Yonhap News reported. Hyundai is not the only Korean shipbuilder looking to capitalise on opportunities to expand into the US market. Another major shipbuilding company, Hanwha Ocean, voiced support for the US Section 301 investigation targeting China’s maritime sector and has acquired a US shipyard in Philadelphia, Pennsylvania. Beijing added five of Hanwha Ocean’s US affiliates, including Philly Shipyard, to its blacklist on October 14, for cooperating with Washington’s efforts to curb China’s maritime sector. Trump said earlier this year that the US might have to use allies to restart its shipbuilding industry. In trade agreements signed with the US over the summer, both Japan and South Korea pledged massive investments. Japan’s US$550 billion investment covers five core American sectors, including commercial and defence shipbuilding. South Korea vowed US$150 billion specifically for the US shipbuilding sector. In the first three quarters of this year, China ranked first with new vessel orders, accounting for 67.3 per cent of the global market, followed by South Korea at 22.1 per cent and Japan at 6.7 per cent, according to data released by the China Association of the National Shipbuilding Industry on October 17.
