Chinese shipbuilding industry hit by global slowdown on route to global leadership

China shipbuilding industry continues to struggle under global recession, even if new orders increase in the second half of 2009. Since September 2008, the country's shipbuilding industry has deteriorated as new orders shrank and the price of vessels plunged with the decline in demand of new ships. The average price of ships has dropped more than 20% during the past year. The Chinese shipbuilding industry also faces problems such as financing difficulties and overcapacity.

Nevertheless, taking full advantage of low labour cost and domestic demand, the Chinese shipbuilding industry has developed substantially over the past three years, reaching a production capacity of 66 million tons that is expected to rise to 80 to 90 million tons in 2010. It has also recently rose to second in the world in terms of tonnage and number of vessels built, and with expectation to take over the top position from South Korea in the near future. The nation targets to become the global shipbuilding leader by the 2015.

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