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US-China relations
ChinaMilitary

Mainland China shipbuilding for Taiwanese firm likely aiding PLA Navy build-up, says US think tank

  • Taiwan’s Evergreen Marine Corp has bought 44 vessels from mainland since 2018, all but two of which from shipyards that produce PLA warships, says CSIS
  • Washington-based think tank says democracies in the region should instead consider buying vessels from South Korea and Japan

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Evergreen says all its containership projects have been subject to international bidding, and that its contracts with mainland shipbuilder CSSC were “completely different and separate” from CSSC’s military department Photo: Shutterstock Images
Reuters

Contracts between mainland China’s top state-owned shipbuilding firm and Taiwan’s leading shipping company are likely to be lowering the costs of upgrading the PLA Navy, posing security concerns for the island claimed by Beijing, a US think tank said on Thursday.

China State Shipbuilding Corp (CSSC) is a key producer of vessels for Beijing’s rapidly expanding People’s Liberation Army Navy, and is thought to be building its third aircraft carrier.
Taiwan’s Evergreen Marine Corp has bought 44 vessels from mainland China since 2018, all but two of which were ordered from shipyards that produce Chinese warships, including CSSC, the Centre for Strategic and International Studies (CSIS) said in a report.

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The Washington-based think tank said foreign companies, including from US allies such as France, also bought ships from CSSC, which the United States has placed on an investment blacklist for US individuals and companies because of its links to Beijing’s military.

CSIS said while there was limited transparency on the flow of foreign capital in mainland China’s shipbuilding industry, “available evidence indicates that profits from foreign orders are likely lowering the costs of upgrading China’s navy”.

CSIS called the foreign contracts “a tangible threat to national security” for some democracies in the region and said companies should consider US allies South Korea and Japan as alternative shipbuilding partners.

Self-governed Taiwan has complained about increased military pressure by Beijing, which has never renounced the use of force to bring the island under its control.

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