CHINA’S shipbuilding industry is riding a wave of major deliveries, with five advanced vessels handed over in just three weeks. Industry analysts said that the sector, bolstered by coordinated policy support, decades of technological accumulation and surging domestic and overseas demand, has entered a “supercycle,” leading the world in the three key metrics of ship completions, new orders and order backlogs.
Analysts said that amid the sector’s rapid expansion, new cooperation opportunities will emerge with the world’s leading shipbuilding players. International collaboration is expected to shift from mere technology imports to joint research and development (R&D) of advanced vessels and global coordination in areas such as smart shipping rules and standards.
On Monday, the China Association of the National Shipbuilding Industry said that Hudong-Zhonghua Shipbuilding Co.’s 174,000-cubic-meter liquefied natural gas (LNG) carrier, Dalian Shipbuilding’s 307,000-ton very large crude carrier, and China State Shipbuilding Corp. Qingdao Beihai Shipbuilding’s 210,000-ton LNG dual-fuel bulk carrier were delivered recently, with multiple key technical indicators exceeding expectations, and notable energy-saving and carbon-reduction benefits.
According to media reports, most of China’s leading shipbuilders now have order books extending beyond 2030 and the entire industry has entered a “supercycle.” Chinese analysts pointed to the convergence of policy support, concentrated breakthroughs in proprietary technologies and enhanced domestic industrial supporting capabilities as the driving forces behind this “supercycle.” “Over the years, the country has provided comprehensive support for the development of green and intelligent vessels, setting China apart from countries where individual firms fight alone. Meanwhile, after more than a decade of accumulation and capacity consolidation, the industry is reaping the fruits of its efforts. Lastly, China’s marine equipment system capabilities have been significantly strengthened,” Zhou Liwei, an expert at the China Classification Society, said.
The industry experienced a period of consolidation following the 2008 financial crisis, which reduced the overall number of shipyards while also attracting new players from the private sector and bringing fresh vitality to the industry, Zhou noted.
The rapid improvement in China’s shipbuilding capacity has also been driven by the country’s overall technological advancement. “Many successful technologies from the automotive and commercial space sectors have been adapted or improved for use in shipbuilding and shipping, giving Chinese shipbuilders unique advantages,” Zhou said.
Externally, geopolitical conflicts have fueled demand for vessels featuring green and energy-saving technologies, providing favorable development opportunities for the Chinese shipbuilding industry.
Chinese experts pointed out that as Chinese shipyards fulfill customer orders during this “supercycle,” opportunities for cooperation with foreign shipbuilders will also emerge.
“Currently, except for high-end main engines and some LNG technologies, China has achieved independent capabilities in most areas, leaving shrinking room for cooperation in the traditional sense. The focus of cooperation is shifting to new product development, new technology application, and jointly shaping international rules and R&D standards in the era of green and intelligent vessels,” Zhou said.