Why China does not fill every shipyard with warships

Why does China not use all available shipyard capacity to build naval vessels?

More warships would compete with merchant construction for skilled workers, while crew training, funding and political support also limit expansion.

Warship construction competes with commercial ships for a finite number of skilled yard workers. The navy also faces limits on crew training, allocated funding and political support. Maximising naval output would mean giving up merchant-ship production, which China still wants to retain. The answer therefore treats physical yard capacity as only part of the constraint.