Formation of the largest shipbuilding company: China continues using dual-use production to strengthen its strategic edge over the U.S.

On August 19, 2025, it was announced that China is creating the world’s largest shipbuilding company by merging two state-owned enterprises in a $16 billion deal, establishing a global industry leader.

The future giant, China State Shipbuilding, will have over 530 vessels in its order portfolio and play a significant role in military production, as Beijing’s primary goal is to solidify its position in the global shipbuilding market, where Chinese shipyards already produce more than half of the world’s tonnage.

China’s decision to merge two state-owned shipbuilding companies creates not only an industrial giant but also a structural center of power that, through its scale of orders and technological resources, can set the pace for the global industry, taking a step toward dominating shipbuilding over Western countries.