The Chinese shipbuilding industry is facing growing pressures amid global competition, particularly from South Korea, despite a substantial backlog of orders.

Recent reports indicate that South Korean shipyards secured orders totaling 820,000 compensated gross tons (CGTs) for 17 ships in March 2023, capturing 55 percent of the global total.

In comparison, Chinese shipyards received orders for 520,000 CGTs across 31 vessels, which accounted for 35 percent of the global total.

Typically, global shipbuilding orders fluctuate monthly, reflecting variations in market conditions.

For instance, in February 2023, China received orders for 2.63 million CGTs, significantly surpassing South Korea's 340,000 CGTs.

Although Chinese shipyards maintained a leading number of ship orders in March, South Korean shipyards excelled in gross tonnage largely due to their focus on high-value, large ships.

The advancements of China's shipbuilding industry have placed it at the forefront of major shipbuilding metrics for consecutive years.

As of 2024, China achieved a shipbuilding completion volume representing 55.7 percent of the global share.

Furthermore, new orders accounted for 74.1 percent of the worldwide total, while orders on hand made up 63.1 percent.

Despite these achievements, the industry is confronted with significant challenges domestically, including a reliance on external suppliers for key equipment and hurdles in developing high-value vessels.

In light of these obstacles, the Chinese shipbuilding sector seeks dual breakthroughs: enhancing technical capacity in specialized niches, such as green and smart vessels, and expanding its market reach.

In-depth research into the distinct demands across various regions is essential, as vessel needs can differ significantly by geography.

For example, regions like Asia, Africa, and Latin America have specific requirements regarding vessel performance, price sensitivity, and operational contexts.

Certain inland waterways call for shallow-draft vessels with advanced maneuverability, while coastal areas may necessitate ships with sophisticated berthing and loading-unloading capabilities.

In 2023, Chinese shipbuilding products were exported to 191 countries and regions, with export values of $17.73 billion to Asia, $2.9 billion to Europe, and $2.84 billion to Latin America, according to the China Association of the National Shipbuilding Industry.

The enhancement of port infrastructure in developing nations further provides opportunities for deploying larger-tonnage vessels.

Consequently, Chinese shipyards are encouraged to undertake comprehensive research to offer tailored solutions that can bolster their competitiveness in emerging markets.

To assert leadership in market development, the sector aims to implement a more open innovation system, translating global customer requirements into catalysts for product enhancements.

In traditional segments such as bulk carriers and oil tankers, there is a concerted effort to increase energy efficiency.

In high-value sectors, including liquefied natural gas carriers and ultra-large container ships, adapting to market demands while optimizing supply is a priority, as indicated by analyses in recent publications.

The capacity to recognize and respond to evolving market trends while consistently delivering high-quality vessels is positioned as critical for China’s ongoing resilience and development in the shipbuilding sector.