Advertisement

China’s shipbuilding industry ‘edge’ helps it thrive under US sanctions: study

  • Despite the Trump-era restrictions, the sector achieved record growth last year with most supply chains resilient, researchers said
  • But the report also called for weaknesses to be addressed in case further sanctions are imposed

Reading Time:4 minutes
Why you can trust SCMP
39
A study has found that China’s shipyards are achieving rapid growth despite US sanctions, thanks to technological progress and a complete industrial chain. Photo: Getty Images
Stephen Chenin Beijing
Chinese shipyards appear to be withstanding the onslaught of US sanctions aimed at containing the rapid expansion of the PLA Navy, with a study confirming that almost all components are available from local sources.
The research – commissioned by the Chinese Academy of Engineering, an official assemblage of top Chinese engineering and technology experts that holds considerable sway in shaping government decisions – sheds light on the effect of sanctions imposed by the former Trump administration.

Despite the sanctions, industry data showed record growth last year, with Chinese shipbuilding completions up nearly 12 per cent year on year to 42.32 million deadweight tonnes – more than every other country combined.

New orders were also up by 56 per cent, many for advanced ship types, such as the costly roll-on/roll-off vehicle transport ships, which accounted for 83 per cent of global new orders, data from the China Association of the National Shipbuilding Industry shows.

The research team, led by Liu Cungen, a professor at the School of Naval Architecture, Ocean and Civil Engineering at Shanghai Jiao Tong University, set out to investigate the resilience of China’s marine equipment industry chain against the sanctions.

In a peer-reviewed paper published by the Chinese academic journal Marine Development and Management, the researchers said shipyards continue to have access to all but a small proportion of specialised equipment.

Advertisement