Under continued pressure from U.S. trade unions, the U.S. government recently announced restrictions on China’s shipbuilding industry, analysts pointed out that the move, while its direct goal is to curb China’s development in the field, could also create opportunities for competitors such as South Korea to win a larger share in the global shipbuilding market.

The situation originated on March 12, when five major U.S. labor unions formally submitted a petition to the Biden administration, calling for a trade investigation into China's "unreasonable and discriminatory practices" in the maritime, logistics, and shipbuilding industries. The petition suggested imposing "port fees" on Chinese vessels docking at U.S. ports and establishing a domestic shipbuilding revitalization fund.

In response, Biden promised the U.S. Trade Representative’s Office to review the petition according to law.This statement inspired the South Korean shipbuilding industry.Some exchange funds holding South Korea’s five largest shipbuilding shares jumped last week to become one of the most profitable funds.

Analyst Jung Yeon-seung from NH Investment & Securities in South Korea believes that, considering the upcoming election, the Biden administration may accept the union's request for an investigation. If the U.S. imposes "sanctions" on Chinese shipbuilding companies, it would directly undermine the price competitiveness of Chinese enterprises.

In the long run, as U.S. LNG and petroleum gas exports increase, South Korean shipbuilders will also increase their share in the oil and gas shipping ship market.

However, some remain cautious. Bai Ming, a researcher at the Ministry of Commerce, told the Global Times that the "challenge" from U.S. unions and the government is aimed at protecting the interests of American workers. The extent of future U.S. actions targeting China's shipbuilding industry remains to be seen.

It is worth noting that although the South Korean shipbuilding industry is currently ranked second in the world for three years in a row, it is also facing structural challenges such as low fertility, long-term decline in the industry and a shortage of talent.

Overall, pressure from the U.S. trade unions has created new opportunities for the South Korean shipbuilding industry to win a larger share in the international market, but if South Korea can handle the counterattack, it also needs its own reform and policy support from its industry.