Global shipowners are turning to China

Our reporter Kong Dechen

At the shipbuilding site of the Jiangxi Province Jiujiang City Duchang County Shipyard, workers are painting. Photo by Fu Jianbin (Xinhua News Agency)

Recently, the 319,000-ton ammonia-prepared ultra-large crude oil tanker “EBURONES” built by China State Shipbuilding Corporation Qingdao Beihai Shipbuilding Co., Ltd. set sail from Qingdao, Shandong. This ship is Beihai Shipbuilding’s second ultra-large crude oil tanker for Belgium’s EURONAV. Photo by Zhang Jingang (Xinhua News Agency)

At the production base of Taizhou Sanfu Ship Engineering Co., Ltd. in Gaogang District, Taizhou City, Jiangsu Province, several large ships are under construction. Photo by Zhou Shegen (People’s Visual)

Data source: China Association of the National Industry of Shipbuilding

By 2025, China’s shipbuilding industry has once again delivered impressive results: the three major indicators continue to lead globally, maintaining the world’s number one position for 16 consecutive years.

According to recent data released by the Ministry of Industry and Information Technology, in 2025, China’s annual shipbuilding completion volume reached 53.69 million deadweight tons, accounting for 56.1% of the world total; new orders totaled 107.82 million deadweight tons, representing 69.0% of the global total; and the backlog of orders was 274.42 million deadweight tons, or 66.8% of the world total, setting new records. This is not only a set of impressive trade figures but also a vivid reflection of China’s manufacturing industry deeply integrating into the global industrial division of labor and serving the world economy. From a “shipbuilding power” to a “service provider for the world,” China’s shipbuilding industry is opening up and providing indispensable “Chinese power” for the global shipping industry.

Nearly 90% of ships exported

In 2025, international shipowners from Europe to Southeast Asia, North America to the Middle East, are increasingly placing orders with Chinese shipyards.

CSSC’s Guangzhou Shipyard International delivered the first vessel of the 111,000-ton LNG dual-fuel crude oil/final product tanker “ATLANTIC PEARL” built for Singapore EPS; Shandong Shipbuilding Heavy Industry recently started construction on an 115,000-ton ice-strengthened oil product tanker for Greek Dynacom and the first 115,000-ton crude oil tanker for Arcadia; Greek shipowner Danaos and German shipowner Asiatic Lloyd have also placed orders for 7,100 TEU container ships with China State Shipbuilding Corporation’s Dalian Shipbuilding Industry.

“International shipowners are clearly returning to the Chinese market,” said Li Yanqing, Vice President of the China Association of the Industry of Shipbuilding. Data shows that in 2025, Chinese exports accounted for 89.6% of the country’s completed shipbuilding volume, 89.5% of new orders, and 93.2% of the backlog of orders. This means that for every 10 ships built in China, nearly 9 will serve the global shipping market.

“In 2025, China’s shipbuilding industry achieved remarkable results, with all three major indicators exceeding expectations,” Li Yanqing said. “Looking ahead, the market is expected to develop relatively steadily, so it’s crucial for China’s shipbuilding industry to continue seizing market opportunities, quickly secure orders, and ensure delivery.”

Why are global shipowners so fond of China?

Speed of construction is one factor. In 2025, CSSC’s Hudong Zhonghua Shipbuilding (Group) Co., Ltd. delivered several 174,000 cubic meter LNG transport ships for QatarEnergy’s “Hundred Ships Plan.” Saad Sherida al-Kaabi, QatarEnergy’s Minister of State for Energy Affairs, said: “Since delivering the first ship in 2024, we have been receiving ships almost every month, which far exceeds our expectations.” This “Chinese speed” has impressed international shipowners.

Another reason is cost-effectiveness. Zhong Zhaochao, founder and CEO of Yi Shipping, analyzed that China’s shipbuilding industry has accumulated mature industrial chain capabilities and strong market competitiveness after decades of development. Chinese shipbuilders can simultaneously offer large-scale construction capacity, reliable delivery, mature green ship solutions, and financial support, effectively reducing the overall risks for shipowners in technology, financing, and delivery.

“There is a consensus in the global shipbuilding industry: under the same technical level, China’s shipbuilding costs are the lowest; at the same price, China’s delivery capacity and reliability are the strongest,” Zhong Zhaochao explained. Taking Hudong Zhonghua as an example, its independently developed “Changheng” series LNG carriers control evaporation rates within 0.085%. “For the same amount of natural gas, ships built in China evaporate less, directly saving money for customers,” he said.

Professor Xu Guangjian from the School of Public Administration at Renmin University of China believes that the most critical support for China’s shipbuilding industry lies in the systemic competitiveness of the entire industrial chain. As the only country in the world with all industrial categories listed in the United Nations Industrial Classification, China’s manufacturing value added accounts for 30% of the global total, ranking first in the world for 14 consecutive years. A complete industrial system facilitates the formation of strong industrial supporting capabilities and comprehensive cost advantages. “A robust manufacturing system endows Chinese shipbuilding companies with great resilience, enabling them to effectively ensure the supply of parts during global supply chain disruptions and maintain steady production, which reassures international shipowners,” Xu Guangjian said.

Systemic competitiveness of the entire industry chain

China’s shipbuilding industry continues to lead globally not only because of order volume but also due to its integrated innovation capabilities across the industry chain and its open attitude toward serving the world.

At Shanghai CSSC’s Waigaoqiao Shipbuilding’s No. 2 dock, the second domestically built large cruise ship, “Aida Huacheng,” has achieved over 91% overall progress, with construction time shortened by nearly 8 months compared to the first domestically built large cruise ship. “Now, the scheduling algorithms for material entry and exit are all handled by AI,” said Yuan Yi, director of Waigaoqiao Shipbuilding. In the sheet metal workshop, laser cutting and plasma cutting stations are busy, all coordinated by an “AI brain.” Compared to the past, when experienced workers scheduled production based on intuition, the AI’s autonomous scheduling has increased workshop capacity by 25%.

Experts told reporters that, as a representative of traditional heavy industry, the deep integration of AI with real-world scenarios has solved complex problems in ship manufacturing, such as intricate processes and material management, bringing about a full-process revolution. In the future, not only domestically produced large cruise ships but all types of ships—from design and procurement to production and logistics—will be interconnected through AI, allowing every employee to work alongside “digital workers,” making Chinese shipbuilding not only “massive” but also “precise.”

Green transformation is another “Chinese business card.”

In 2025, the global shipping industry’s green and low-carbon transformation accelerated. Chinese shipbuilding companies, with their forward-looking layout in new energy ships, gained market advantages. Data shows that in 2025, multiple world-class green and intelligent ships were delivered, with significant breakthroughs in high-end transformation and high-quality industry development.

CSSC’s Hudong Zhonghua delivered the world’s first 24,000 TEU LNG dual-fuel ultra-large container ship, “Dafeng Seine,” equipped with 18,600 cubic meters of MARK III membrane fuel tanks, capable of providing nearly 20,000 nautical miles of “green power” per voyage; Waigaoqiao Shipbuilding delivered the world’s first wind-assisted oil product tanker, “Blanc Hach,” equipped with three rigid wing sails, which can save 14.5 tons of fuel daily under ideal sea conditions.

“Different countries and regions have different demands for products,” said a relevant person from China State Shipbuilding Corporation. “For example, Southeast Asian markets focus more on cost-effectiveness and adaptability, the EU emphasizes compliance and sustainability, while the Americas have higher requirements for automation and intelligence.” Chinese companies are continuing to deepen their globalization strategies, expanding localized services and supply chains overseas to gain user recognition.

Advantages of industry chain collaboration enhance China’s shipbuilding competitiveness

In Changxing Island, Shanghai, CSSC’s Hudong Zhonghua, Jiangnan Shipbuilding, and other state-owned enterprises lead over 7,000 supporting companies, forming an “assembly + supporting” ecosystem network. A responsible person said that from ship steel plates to engines, navigation systems, and deck machinery, China has built a complete and independently controllable supply chain system from core components and standard products to solutions.

“In the Yangtze River Delta and other shipbuilding bases, China has formed efficient industrial clusters, with upstream and downstream companies working closely together, playing an irreplaceable role in reducing logistics and production costs,” Xu Guangjian told reporters. He also emphasized that improving service capabilities is equally important. Compared to foreign brands with long supply cycles and high maintenance costs, Chinese shipbuilding companies have advantages in service and responsiveness, with shorter after-sales response times and more flexible engineering support. For global shipping companies, this “easy to buy, affordable to use, quick to repair” experience is far more attractive than just performance parameters.

Moving toward a “strong shipbuilding nation”

In China’s foreign trade, many goods are exported more than imported. Why is it particularly noteworthy that China’s shipbuilding industry has maintained the top spot in the world for 16 consecutive years?

“This is not just a change in trade data but a significant increase in China’s position in the global value chain,” Li Yanqing said. “The shipbuilding industry is a key support for implementing strategies of a manufacturing powerhouse, a transportation powerhouse, and a maritime power. China has shifted from being the largest ship consumer to the world’s largest ship supplier, marking a leap from ‘scale advantage’ to ‘system advantage’ in manufacturing.”

For a long time, South Korea, Japan, and other countries relied on decades of technological accumulation and brand advantages to be the main builders of high-end ships. China’s shipbuilding industry has transitioned from mainly building bulk carriers and oil tankers to making breakthroughs in high-end vessels like LNG carriers, large container ships, and car carriers. Among 18 major ship types, 16 have new order volumes ranking first in the world, representing a profound structural shift.

“China can not only produce individual equipment but also export a complete set of replicable and scalable advanced manufacturing capabilities,” Li Yanqing said. Moving from simple cargo trade to comprehensive export of “equipment + solutions + services,” China’s shipbuilding industry is deeply integrating into the global industrial division of labor and jointly shaping a new industry pattern of green and intelligent development.

This integration is two-way and mutually beneficial.

For the global shipping industry, China’s shipbuilding rise means more choices and more reliable supply. Against the backdrop of slowing global economic growth, China’s successful overseas expansion demonstrates the resilience and competitiveness of Chinese manufacturing, providing strong support for the stability of global supply chains.

Data shows that in 2025, six Chinese shipbuilding companies ranked among the top 10 worldwide in terms of shipbuilding completion volume, new orders, and backlog. China State Shipbuilding Corporation became the world’s largest listed shipbuilding company, with a backlog representing 18% of the global total, extending production schedules to 2029. This scale advantage translates into market influence, enabling China’s shipbuilding industry to play a leading role in the global green transition of shipping.

For China’s manufacturing industry, the high growth of ship exports has driven coordinated development across upstream and downstream industries.

Shipbuilding involves dozens of sectors, including steel, machinery, electronics, and chemicals. A large LNG carrier requires 25 million parts, supporting over 500 global suppliers. China’s shipbuilding “going global” is essentially a collective “going overseas” of the entire manufacturing supply chain.

“Having a significant share in the international market can enhance the scale effects of shipbuilding enterprises, further reducing production costs,” Xu Guangjian said. “More importantly, it gives Chinese shipbuilders greater voice and bargaining power in the global shipping industry chain.” He added, “With full order books extending to 2028 or beyond, the industry has stable expectations, allowing companies to respond more calmly to potential market fluctuations and invest more in technological upgrades and product optimization.”

Looking ahead, Xu Guangjian pointed out that the biggest challenge for China’s shipbuilding industry is how to continue climbing the global value chain while maintaining scale advantages, and how to offer high-quality, cost-effective products that remain attractive internationally. He emphasized that major shipbuilders should continue increasing R&D investment, benchmark against global leaders, tackle key core technologies, and accelerate solving industry bottlenecks to achieve a historic leap toward becoming a “shipbuilding powerhouse.”