U.S. Navy Secretary John Phelan called for deeper collaboration with Japan and South Korea in shipbuilding during a visit to Tokyo this week, warning that without urgent action, the U.S. risks falling further behind China’s rapidly expanding maritime capabilities.
According to a news report from Nikkei Asia, Phelan stressed the importance of adopting a “dual-use” approach—constructing commercial vessels designed for rapid military conversion, a strategy already embraced by China.
“One of the things I’ve noticed studying the Chinese navy is that they design their commercial ships with military applications in mind,” Phelan said. “We need to be thinking along those lines.” He emphasized that commercial ships played key roles in both World Wars and would again be critical in any future conflict.
Phelan’s visit marks his first overseas trip as Navy secretary since taking office in March. His itinerary includes stops at Japan Marine United’s Isogo Works shipyard in Yokohama, as well as shipyards in South Korea. He aims to encourage Japanese and Korean companies to invest in U.S. shipbuilding facilities, especially on the West Coast, where additional capacity is urgently needed.
The U.S. Navy currently operates about 295 ships, compared to China’s fleet of over 370 vessels, according to the Pentagon’s 2024 China Military Power Report. China’s navy is projected to reach 425 ships by 2030, supported by the world’s largest and most efficient shipbuilding sector, led by China State Shipbuilding Corporation, which alone built more tonnage in 2024 than the entire U.S. shipbuilding industry has produced since World War II. China now controls more than 50% of global shipbuilding output, while South Korea holds 29%, Japan 13%, and the U.S. just 0.1%, according to the Center for Strategic and International Studies (CSIS).
“This is a tipping point,” Phelan said. “If we don’t act now to close the shipbuilding gap with China, it becomes very, very hard to catch up.”
Experts agree that the U.S. cannot match China’s shipbuilding volume but should instead focus on building strategic capacity by partnering with allies. “The goal should be to build up shipbuilding capacity outside of China—in Japan, Korea, and selectively in the U.S.,” said Matthew Funaiole, senior fellow at CSIS.
Phelan’s urgency was echoed in a personal message he received from President Donald Trump, who sent a photo of a rusted U.S. warship and urged Phelan to “stay ahead of the curve.”
With defense, economic, and strategic ties at stake, Phelan underscored that the Indo-Pacific—and shipbuilding partnerships with Japan and South Korea—remain critical to U.S. security.
“We need to get going fast,” he said.
