Japan and the United States plan to sign a memorandum on improving shipbuilding capabilities during U.S. President Donald Trump's visit starting Monday. The agreement seeks to counter China's dominance in the sector and enhance national security.
Japan and the United States are set to sign a memorandum aimed at jointly enhancing their shipbuilding capabilities, coinciding with U.S. President Donald Trump's visit to Japan beginning Monday, October 27, 2025. According to The Yomiuri Shimbun, the two countries plan to establish a "Japan-U.S. shipbuilding working group" to stimulate their shipbuilding industries.
Land, Infrastructure, Transport and Tourism Minister Yasushi Kaneko and U.S. Ambassador to Japan George Glass are likely to sign the memorandum. The draft states that the two countries recognize "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."
This initiative addresses China's dominance, with its global market share of shipbuilding orders exceeding 70% in 2024, while Japan's stood at 8%. Both nations worry that growing reliance on China could jeopardize maritime shipping during emergencies. The effort ties into shipbuilding cooperation from Japan-U.S. tariff negotiations, where Japan pledged $550 billion (about ¥80 trillion) in U.S. investments.
Under the plan, Japanese and U.S. companies will invest in shipyard construction and improvements for greater competitiveness and efficiency. Measures include standardizing vessel designs and parts, facilitating joint technological developments, enabling U.S. shipbuilders to produce Japanese-designed parts, and allowing mutual ship repairs and parts supply. The agreement also covers improving recruitment and training, as well as introducing advanced technologies like artificial intelligence for vessel design and functionality.
During the summit between Prime Minister Sanae Takaichi and Trump on Tuesday, October 28, another memorandum on cooperation for critical mineral resources, including rare earths, is expected. It will promote investments in joint development and supply source diversification to reduce dependence on China, which has restricted rare earth exports.