US President Donald Trump signed an executive order Wednesday that seeks to revive US shipbuilding and will dispatch Elon Musk-led Department of Government Efficiency (DOGE) squad to investigate how the US Navy fell so far behind in turning out vessels.
The new executive order aims at reviving US shipbuilding and reducing China's grip on the global shipping industry, giving the Musk's team a wide leverage to tackle some of the military’s most expensive — and troubled — projects, Politico reported.
This comes amid Republican and Democratic US lawmakers warning about China's growing dominance on the seas and diminishing US naval readiness.
The executive order directed the Musk-led DOGE to review past Navy shipbuilding decisions that have led to problems with some major platforms, including the $22 billion frigate program, an official was quoted by Bloomberg as saying.
“The Administration will review ways to improve competition within the private sector for government projects and reduce costs to ensure taxpayer funds are being utilised most efficiently,” the order states.
The order directs the US Trade Representative to move ahead with a plan that includes levying US port docking fees on any ship that is part of a fleet that includes Chinese-built or Chinese-flagged vessels. Allies will be pushed to act similarly.
It further requires the Department of Homeland Security to enforce collection of Harbor Maintenance Fees and other charges, and to prevent cargo carriers from circumventing those fees by routing goods to ports in Mexico and Canada and then sending cargo into the United States via land borders.
Chinese shipbuilders account for more than 50% of all merchant vessel cargo capacity produced globally each year, up from just 5% in 1999, according to the Center for Strategic and International Studies.
As per Reuters, the US shipbuilding industry has struggled due to high costs and a complex regulatory structure, which has enabled rivals like China to grow rapidly.
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