For the first time in decades, the U.S. allows the Navy to build ships abroad.

According to U.S. law, the U.S. Navy's major warships must be built in domestic shipyards. This is aimed at preventing the leakage of military secrets and also intends to benefit the U.S. shipbuilding industry. However, on Thursday, Trump signed a national security memorandum that, for the first time in decades, allows foreign shipbuilders awarded U.S. Navy contracts to build ships outside of the United States. According to the memorandum, foreign shipbuilders that make "significant and long-term investments" in the U.S. shipbuilding industry, create jobs for Americans, and train the American workforce will be eligible for a temporary permit to build up to two ships for the U.S. at their parent companys shipyards located outside of the U.S., in order to expedite the filling of delivery gaps. The memorandum pointed out that the U.S. shipbuilding industry suffers from inadequate capacity and a lack of competitiveness, resulting in a backlog of orders across six major Navy shipbuilding programs. In addition, the U.S. shipbuilding industry has shrunk, coupled with a reduction in surrounding suppliers, leading to increased delays and rising costs.