At a government-level meeting held on 27 October, attended by ministers and leaders from China State Shipbuilding Corp (CSSC) and China Shipbuilding Industry Corp (CSIC), the ministry of industry and information technology (MIIT) called on the shipbuilding industry to prove their mettle in the face of the protracted slump.
Xing Guobin, deputy minister for MIIT, said the global shipbuilding segment is facing the toughest period since the post-global financial crisis. In order to tide through the recession, Xing listed six areas of improvements that China’s ailing shipbuilding sector need to act upon.
The six improvements needed include a greater focus on innovation and technology, developing more advanced and efficient production processes, building up local brands, supporting and nurturing reputable enterprises, integrating military and commercial shipbuilding, and removing excess shipbuilding capacity.
Xing noted that the shipbuilding industry crisis has dragged on for eight years, and the remaining shipyards that are still in business are hanging on by a thread.
“Apart from cruise shipbuilding in a handful of European yards that are doing well, the global shipbuilding industry, including Japanese and South Korean markets, are in serious trouble,” Xing was quoted saying.
He highlighted that even with China’s shipbuilding market share at the forefront globally, the country’s industrial innovation continues to fall behind, efficiency remains low and product quality has a lot of room for improvement.
Xing added MIIT and the National Development and Reform Commission (NDRC) are currently working on a study to speed up and structural reform and upgrade of China’s shipbuilding industry for the period 2016-2020, as part of China’s wider Thirteenth Five-Year Plan on social and economic development initiatives.
“History has shown that for every major global or regional crisis, there is always an opportunity,” Xing said.
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