Core Viewpoint - The Japanese shipbuilding industry is undergoing a significant revival effort, with the government planning to establish a special fund of 1 trillion yen (approximately 47 billion RMB) to increase Japan's global market share from 13% to 20% by 2035 [1] Group 1: Government Initiatives - The initiative has been strongly promoted by the ruling Liberal Democratic Party and is included in the proposed supplementary budget for the fiscal year 2025, indicating the government's commitment [1] - The fund aims to modernize old facilities, establish automated production lines, and enhance research and development in new energy ship technologies [1] Group 2: Industry Challenges - Japan's shipbuilding industry faces severe challenges, having seen its global market share drop from nearly 50% in the 1970s to less than 10% today, lagging behind China and South Korea [1] - High labor costs and an aging workforce are significant internal challenges, with younger generations reluctant to enter the shipbuilding sector [3] Group 3: Competitive Landscape - South Korea dominates the high-end ship sector, particularly LNG vessels, capturing over 70% of new global orders in this category, with profit margins exceeding 12% [1] - In contrast, many Japanese shipyards remain focused on traditional ship types, resulting in low profitability [1] Group 4: Strategic Partnerships - Japan is actively seeking collaboration with the United States to form a joint shipbuilding revitalization fund, aiming to explore opportunities in military and transoceanic transport vessels [3] - This strategy reflects Japan's intention to become a substitute center for shipbuilding for Western countries amid a "de-China" supply chain shift [3] Group 5: China's Competitive Edge - China's shipbuilding industry has made significant advancements, particularly in the new energy ship sector, holding a global market share of over 40% and dominating with 68.3% of new orders in the first half of 2025 [3][5] - The recent merger of China Shipbuilding Group and China State Shipbuilding Corporation has further strengthened China's competitive position, with a combined asset scale exceeding 4 trillion RMB [5]