China's dynamic shipbuilding sector now has the attention of key decision makers in Washington. During testimony before the Armed Services Committee of the House of Representatives on 13 December 2007, Chief of Naval Operations (CNO) Admiral Gary Roughead observed, 'The fact that our shipbuilding capacity and industry is not as competitive as other builders around the world is cause for concern.' Pointing directly to Beijing's new prowess in this area, he concluded, ' China is very competitive on the world market. There is no question that their shipbuilding capability is increasing rapidly.' The present study aims to present a truly comprehensive survey of this key sector of the growing Chinese economy. In doing so, it will provide decision makers and analysts with the clearest possible picture of the extraordinary pace of activity now under way in China's ports, as well as the commercial and strategic implications flowing from this development. China's rapidly growing shipbuilding industry has focused primarily on commercial vessels. However, the People's Republic of China (PRC) government classifies shipbuilding as a strategic sector and has limited foreign shareholdings in Chinese shipyards and marine diesel and crankshaft factories to 49 percent. Viewed through a commercial lens, these actions raise World Trade Organization (WTO) compliance questions. Strategically, this affirms that Beijing sees a strong shipbuilding industry, upon which it is able to exert considerable influence, as a central pillar in China's maritime development. China's shipbuilding industry benefited greatly from Deng Xiaoping's defense conversion program. Compared to other defense-related enterprises, such as aerospace, the Chinese shipbuilding industry has enjoyed a much smoother transition to international competitiveness. This stems from timing and structural advantages.


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    Title :

    Comprehensive Survey of China's Dynamic Shipbuilding Industry: Commercial Development and Strategic Implications


    Contributors:
    G. Collins (author) / M. C. Grubb (author)

    Publication date :

    2008


    Size :

    65 pages


    Type of media :

    Report


    Type of material :

    No indication


    Language :

    English





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