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China will curb the recovery of the Japanese shipbuilding industry momentum

Although Japan's shipbuilding industry continued to recover this year, orders increased, but the Japanese shipping companies seem not optimistic, the face of China's shipbuilding industry, the Japanese shipbuilding enterprises still have a high sense of crisis.

According to a recent report released by the Japan Shipbuilding Export Association (JSEA), as of August this year, Japanese ship orders have been growing for eight consecutive months. However, the Japanese media point of view that the Japanese shipbuilding industry this year, mainly due to the recovery of the Chinese shipbuilding industry to substantially reduce production capacity, once the market recovery, the Chinese shipbuilding enterprises once again strong attack, the Japanese shipbuilding industry recovery will soon fail.

According to the Nikkei news reports, one of China's famous shipbuilding center in Zhoushan City, Zhejiang Province, with more than 60 shipyards. However, at present, Zhoushan City, most of the shipyard only rusty crane (ship) and ships, almost empty. Zhejiang and shipbuilding (location commentary news) and other Zhoushan major shipyards have ceased to operate.

However, familiar with Zhoushan shipyard Zhoushan Chang Shi (position commentary news) shipbuilding general manager Austrian Village Healthy Health said that these Chinese shipyards did not collapse off business. In fact, most of the idle shipyards are doing the job, once the market began to recover will soon start operations again. In Zhoushan, some marine equipment manufacturers have been re-run since the spring of this year, is currently producing oil for the petrochemical plant. However, these supporting business has been waiting for the shipbuilding market recovery, and thus return to the marine equipment manufacturing business.

Since 2000, the global shipbuilding industry two recessions are related to China's shipbuilding overcapacity. In the boom, the Chinese private steel and real estate companies have set foot in the shipbuilding market, with the advantages of low steel and labor costs to build a large number of low-cost ships. China has also succeeded in replacing Korea as the world's largest shipbuilding country. And because the global ship prices continue to decline, the Japanese shipping companies so in trouble.

This year, in order to solve the problem of excess capacity, the Chinese government announced a new plan, hoping to top 10 shipbuilding market share from the current 50% to 70%. The main shipping companies will receive preferential financing, and drive the price competition of small and medium-sized shipping companies will be theoretically eliminated or merged.

Although the two groups in the ship heavy industry and the ship group is integrated operation, but the situation of private shipping companies did not appear much change. As most private enterprises are owned by local entrepreneurs, these entrepreneurs often participate in various industries such as real estate. When the shipbuilding market is in the doldrums, these entrepreneurs are usually only suspended from the operation of the shipyard and turned to other businesses, and once the ship demand rebounded, these local enterprises will return to the shipbuilding market.

September 13, JSEA released data show that the Japanese ship orders in the first eight months of this year continued to grow in August this year, then the amount of orders is increased to 2.8 times the same period last year. Although some of the reasons for the increase in Japanese shipbuild orders were due to the fact that the new ship orders were too low in 2016, only one-sixth of 2015, but the main reason was the recovery in the first half of the ship market, the global market demand rebounded 30% The

Although orders increased, but the Japanese shipping companies are still full of a sense of crisis. Japan's Sanoyas shipowners president Takada pointed out that the need to re-appear in the case of excess supply to consider the case of business development program, or will not be able to continue to survive.

Once the ship market recovery, the face of the shipbuilding market to return to China's shipbuilding enterprises, how to rely on technical or other advantages and the Chinese shipowners dislocation competition, as the Japanese shipping companies need to solve the current problem.

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