Reference News, March 21 report: According to the "Nikkei Shimbun" on March 19, China's shipbuilding industry is experiencing a rapid recovery in new orders. Although the restrictions imposed by the Trump administration on Chinese ships led to a challenging year in 2025, with these measures suspended, new orders have started to grow by the end of 2025. In addition, China's presence in high-value-added ship sectors such as liquefied natural gas (LNG) carriers is increasing, showcasing its huge potential as the world's largest shipbuilding power.

In Dalian, a port city in northeastern China, several oil tankers are under construction at the production base of China Shipbuilding Group Co., Ltd., with large cranes working on the site.

In recent years, China's shipbuilding industry has experienced ups and downs. The demand for environmentally friendly ships continued to grow until 2024, but faced an unexpected adverse impact in 2025. The Office of the U.S. Trade Representative announced that port fees would be charged on Chinese ships docking at U.S. ports, which took effect in the fall of that year.

For shipping companies, rising costs forced them to tighten their orders for Chinese shipbuilders. Data from Clarkson Research shows that new ship orders in China fell by 35% in 2025 to 35.36 million corrected gross tons (CGT), marking the first decline in three years.

However, monthly analysis reveals a different reality. Statistical data from the China Shipbuilding Industry Association show that orders below the same period level before October 2025 saw a significant increase by the end of the year. New orders in November reached approximately 130 million deadweight tons, 1.8 times the average monthly level from January to October, and rose to 3.2 times the average monthly level in December.

After the decision by the United States and China in November 2025 to suspend the collection of port fees, ship owners who had been waiting seem to have resumed placing orders with Chinese shipbuilders.

The movements of ship owners are clearly reflected in the performance of Yangzijiang Shipyard Co., Ltd., China's largest private shipbuilder. From January to June 2025, the company's new orders were only $540 million, but by mid-November it had increased to $2.17 billion, and added another $300 million by year-end. This means that 80% of the new orders for the year came from the second half of the year.

Yangzijiang Shipyard's CEO Ren Letian said, "This growth momentum will continue into 2026."

Indeed, the rapid rebound in new orders for Chinese shipbuilders did not slow down after entering 2026. According to industry media reports, in January this year, China accounted for 67% of global new orders in the shipbuilding industry, and in February it even climbed to 80%. Private giant Hengli Heavy Industry received an order for up to six 180,000-ton bulk carriers from a Greek company in February.

The resilience of China's shipbuilding industry mainly lies in its cost competitiveness. Data from financial giant ING shows that labor costs (over 20% of construction costs) for Chinese shipbuilders are 50% lower than those in Japan and South Korea. Additionally, China can purchase large amounts of steel for shipbuilding at lower prices, which is also one of its advantages.

However, China's advantages are not just about low prices. In recent years, China has also actively expanded the LNG carrier market. Due to the high technical requirements of LNG carriers, this sector has traditionally been dominated by South Korean companies.

In early January 2026, China Shipping Group's core enterprise, Shanghai Hudong Zhonghua Shipbuilding, delivered the LNG carrier "Tianshan" to the shipowner. By then, the company had built a total of 60 large LNG carriers. It is reported that through the localization of core equipment and components, the construction cycle of LNG ships was reduced from 36 months to 16 months.

Japan is not entirely on the defensive. From the perspective of economic security, shipping companies prioritize Japanese shipbuilders. The three major Japanese shipping companies have also begun investing in new generation ship design companies, aiming to promote the integration of the shipping and shipbuilding industries. The Japanese government has set a target to double the shipbuilding volume from 2024 by 2035. (Translated by Liu Lin)

Original: toutiao.com/article/7619626046916133402/

Statement: This article represents the views of the author.