“It is the worst time for the shipbuilding industry and nobody knows how long it will last,” said Yu Tianliang, chairman secretary of Yuchai Marine Power Co., Ltd based in Zhuhai, who is also a deputy to the National People’s Congress.

In an interview with China.org.cn, Yu said the plunge in oil prices has prompted clients to cancel or delay orders of offshore rigs, leading to lower profits for shipbuilders.

Ever since the financial crisis in 2008, the shipbuilding industry has had a rough time. Plagued with overcapacity, the industrial landscape has gotten worse.

Yu said many ships that had failed to be delivered are now lying idle in shipyards, freezing a large amount of capital for shipbuilders.

“Many shipbuilders have collapsed,” he told China.org.cn. “More will die in the near future. Only those who have a strong level of competitiveness can weather the storm.”

However, Yu judged the industry has hit the bottom and situation cannot get any worse; however, it will still take time to see any recovery.

He predicted the shipping industry is expected to rebound in 2020.

He believed innovation is the only solution for shipbuilders to define new growth areas and better grapple with market challenges.

He suggested shipbuilders should press ahead with transformation and upgrading from low-end equipment manufacturing to a high-end one.