China to cap foreign investment in shipbuilding

Shanghai: China wants more foreign investors in its shipbuilding industry but will restrict their ownership to a maximum 49 percent, the government said. "We want to learn advanced foreign technology and management skills and will adjust overseas involvement in the sector to ensure sustained development," said the Commission for Science, Technology and Industry for National Defense. But foreign investors seeking to form joint ventures in China will also have to set up their own technology centers and transfer their expertise to local partners, it said in a statement released to state media on Monday. Earlier this summer the industry was surprised to see a Japanese firm, Tsuji Heavy Industries, given majority control at a shipyard project in China, which now looks to have been a one off. Korea's STX Shipbuilding has become the latest foreigner to invest in the mainland, announcing last week plans to build a shipyard plus block building facility around Dalian.  [20/09/06]