China managed to keep its top position in the global shipbuilding industry in 2018. The previous year, Chinese companies constructed 43.2% of the new ships worldwide, in comparison to the 41.9% of 2017. Chinese shipbuilding companies are the base of the country's leading role in the sector, according to the China Association of the National Shipbuilding Industry.
Mainly, China received the 43.9% of worldwide orders in 2018 and also held the 42.8% of the already existent orders, as stated by Xinhua.
From 1950s to the beginning of the 21st century, the three indices were topped by Japan or the Republic of Korea. In the meantime, in 2010, China exceeded the ROK and ranked the first in the world.
However, the shipbuilding sector is still facing challenges, as competition and dropping profits. For instance, Hyundai Heavy Industries Co., reported a 13.9% increase in net losses in 2018.
In addition, Chinese companies are not an exception in this competition.
The China Association of the National Shipbuilding Industry warned of the challenges and noted that more efforts are needed to enhance competitiveness and profitability.
In conclusion, Chinese shipbuilders should take advantage of the situations as is and ramp up research and development investment to accomplish technological breakthroughs and channel more energy into developing liquefied natural gas carriers, the association suggested.