Core Viewpoint - The Japanese government is taking steps to revitalize its shipbuilding industry through a proposal from the ruling Liberal Democratic Party, which includes establishing a "national shipyard" and enhancing cooperation with allies like the U.S. and Europe [1][2]. Group 1: Proposal Details - The proposal aims to create a government-led initiative to build and equip shipyards, with private sector involvement in operations [1]. - It suggests designating ship hulls as "specific important materials" to secure financial support and strengthen the supply chain [2]. - The plan anticipates approximately 1 trillion yen (about 100 billion yuan) in public-private investment, with potential funding included in the 2025 fiscal year supplementary budget [2]. Group 2: Industry Challenges - Japan's shipbuilding workforce has decreased by over 10,000 in the past five years, with projections showing a drop to 71,000 workers by 2024 [2]. - The country’s shipbuilding market share has plummeted from nearly 50% in the 1990s to just 10% currently, with new ship orders falling by 48% year-on-year as of May [3]. - The industry faces significant challenges, including labor shortages and aging infrastructure, which have led to reduced production capacity and competitiveness against countries like China and South Korea [2][3]. Group 3: Future Outlook - The new leadership in the Japanese shipbuilding sector aims to capture at least 20% of the global market share by 2030 [3]. - A joint Japan-U.S. shipbuilding revitalization fund is being prepared to attract investments for domestic shipyards [3]. - However, without securing new orders, the average utilization rate of Japanese shipyards could drop from 50% this year to just 20% by 2027, threatening industrial output and the retention of skilled workers [3].