China becoming world’s go-to for shipbuilding after ‘boom of overseas orders’, but global de-risking threatens to rock the boat
- China State Shipbuilding Corporation became the biggest shipbuilder in the world after a merger in 2019
- Germany, though, has expressed wariness toward China’s growing market share, while the UK has plans to use £4 billion (US$5 billion) to shore up its shipbuilding industry
As China steps up efforts to take more market share in the global shipbuilding industry, some Western countries are poised to pull back to avoid overreliance on Chinese manufacturing at a time of politically charged de-risking.
The China State Shipbuilding Corporation became the biggest shipbuilder in the world after a merger in 2019, and the government-run Xinhua News Agency said last week that the builder had seen a “boom of overseas orders” this year, with production plans scheduled into 2027.
In 2022, China accounted for 48 per cent of global shipyard output, with South Korea at 25 per cent and Japan at 15 per cent, according to data from the maritime industry professional services firm Lloyd’s Register.
China becoming a major world shipbuilding centre may cause other countries to consider it to fill immediate needs for orders where other yards are already at full capacity
In 2022, China’s shipbuilding output, newly received orders and orders on hand accounted for 47.3 per cent, 55.2 per cent and 49 per cent, respectively, of the global market share.
The figures place China ahead of rivals South Korea and Japan, according to data from the China Association of the National Shipbuilding Industry.
“China becoming a major world shipbuilding centre may cause other countries to consider it to fill immediate needs for orders where other yards are already at full capacity,” said Tom Ramage, economic policy analyst with the Washington-based Korea Economic Institute of America.
Globally, the number of shipyards dropped from around 700 in 2007 to around 300 by 2022, according to BRS Shipbrokers.
