China will encourage more foreign investment in its shipbuilding
industry but will restrict foreign ownership to 49 percent,
according to the latest official blueprint for the industry.
"Foreign shipbuilders are allowed to reorganize, acquire or
jointly fund shipbuilding enterprises provided they hold no more
than 49 percent of the shares," according to the National Medium
and Long-term Plan for the Shipbuilding Industry.
The same rules include medium and low-speed ship diesel engine
manufacturing enterprises and crankshaft manufacturing
enterprises.
Sino-foreign joint ventures must set up a technical center to
absorb technologies transferred by foreign investors, the plan
said.
It was published by the State Commission of Science, Technology
and Industry for National Defence, which administers shipbuilding
affairs in China, and the National Development and Reform
Commission, China's top industrial planning body.
As for manufacturing advanced products needed for ships, China
will encourage foreign investors and public investment, it
said.
"Last year foreign investment in China's shipbuilding sector
reached US$220 million, an increase of 45 percent on 2004," said
Nie Lijuan of the China Association of the National Shipbuilding
Industry.
"Although the figure was comparatively small," she said,
"foreign companies have sped up construction of some shipbuilding
plants and some component manufacturing facilities."
China has become the world's third-largest shipbuilder in terms
of output, following Japan and South Korea. In 2005 China's
shipbuilding output was over 12 million deadweight tons (dwt),
approximately 17 percent of the global market.
Also underlined in the plan were product development and
technological improvement.
Under the plan, annual output will hit 17 million dwt by
2010.
The plan also said that more than 60 percent of ship equipment
will be produced locally by 2010.
To realize these objectives, China will speed up construction of
three key shipbuilding bases in the Bohai Rim, the Yangtze River
Delta and the Pearl River Delta.
"This year the shipbuilding industry has continued to grow
rapidly, with new orders hitting 16.08 million dwt in the first
half of the year, an increase of 113 percent over the same period
last year," said Nie.
"More than 70 percent of these new orders are for exports, with
State-owned shipbuilders accounting for over 70 percent of
exports," she said.
(China Daily November 10, 2006)