China leads global shipbuilding market

China accounted for 44.9 per cent of global production, 65.5 per cent of new orders and 51.3 per cent of orders on hand in terms of deadweight tonnage, a measure of how much a ship can carry, according to the China Association of the National Shipbuilding Industry.

China delivered 48 percent of the world's merchant ships last year in terms of compensated gross tonnage, a measure of the amount of work involved in building a ship, according to British shipping market analyst Clarksons Research.

The total order book backlog at Chinese yards is estimated to be US $132 billion, while South Korean yards are sitting on orders worth US $107 billion.

But South Korea still has the biggest market share and a very strong position in LNG, although the Chinese share has been growing in the past 12 months.

Korea is also stronger in liquefied petroleum gas carriers Traditionally, Korea had a very strong tanker position, but now the gap narrowed and in order book terms is closer.

Although China has a strong demand for cruise ships, the market for cruise ships has grown significantly in recent times. Chinese shipyards have made significant progress in the construction of various types of vessels in recent times.

Four 93,000 cubic meter ammonia carriers, the world s largest of the type and the first for China, are being made by the Shanghai-based Jiangnan Shipyard, which received orders from Singapore-based Eastern Pacific Shipping, the two companies announced early last month.

At the end of March, Dalian Shipbuilding Industry also delivered the first Suezmax vessel of its type, a 155,000 tonne dynamic positioning shuttle tanker from China.

China has made breakthroughs in many types of ships, not just because it has improved building capacity, but also because its exceptional performance over the past years has improved domestic and international shipowners confidence in Chinese shipyards, said Penny Peng, senior business development executive at vessel valuation and information analysis firm VesselsValue.

Now they're willing to have a try in China. Peng said that around 1,900 ships have been delivered globally so far this year, with around 900 built by Chinese shipyards.

The number of China-made high-valued types of fuel, such as LNG and liquefied petroleum gas carriers, has also increased significantly, Peng said.

China's future lies not only in building capacity but also in the development of a complete industry chain, she said.

The point is whether it can stop relying on imports for key equipment, so that shipowners confidence in China-made equipment will improve, Mr. Peng said.

China's high-end manufacturing sector also saw its first domestically-developed narrow-body passenger jet, the C 919, taking its maiden commercial flight at the end of May.

China's hopes are high that the C 919 will decrease dependence on foreign technology as ties with Western nations become more unstable.

The C 919 is designed to compete with the 737 and Airbus A 320, but most components used for the C 919 are imported from foreign manufacturers, including the engine, avionics, control systems, communication and landing gear.