China is seeking to expand its share of the global shipbuilding industry to more than 35 percent by 2011, aiming to raise production to 50 million tons by then, the State Council said in a detailed industry stimulus plan.
‘The plan includes government support for qualified companies pursuing listings and issuing bonds. The cabinet also said it would expedite the process of setting up an industry investment fund.
Financial institutions will be urged to boost credit to shipbuilders and support mergers and acquisitions in the industry. Domestic buyers of long-range ships will benefit from the stimulus plan with financial support from the government, which at the same time is trying to reduce overcapacity. Currently, Chinese shipyards have a combined production capacity of 28.81 million DWT, accounting for 29.5 percent of the world’s total, official figures showed. China’s shipbuilding industry has struggled with plummeting orders and overcapacity since the economic crisis triggered a collapse in Chinese trade.