China's top economic planning organ is considering limiting
investment in large-scale shipbuilding projects to prevent the
market from overheating, according to the China Securities
Journal.
The National Development and Reform Commission (NDRC) and the
Commission of Science Technology and Industry for National Defense
(CSTIND) were reportedly working on regulations and policies that
require state approval for shipbuilding projects exceeding 100,000
tons.
The policy meant that projects of more than 100,000 tons should
be approved by NDRC, while the rest should be referred to local
governments, said analysts with Bank of China International (BOC
International).
The regulations would aim to upgrade the structure of the
industry and curb overheated competition within the industry,
analysts said.
But there was no clear timetable for implementing the
regulations, said the sources.
China's shipbuilding industry developed rapidly in the first
half of 2007, with ship completion up 43 percent and orders surging
165 percent over the same period last year, giving it the largest
number of new orders in the world.
The production capacity of the ongoing and planned projects have
reached 40 million dwt (dead weight tons), far exceeding the
CSTIND's goal of achieving annual productivity of 17 million
deadweight tons in 2010.
"But there has been no over-production," said sources with
CSTIND.
The previous goal could be geared upward as the international
market demand had increased in recent months, said the sources.
According to statistics from the UK-based Clarkson World
Shipyard Monitor, shipbuilding orders worldwide have reached 107.7
million dwt and completed shipbuilding projects reached 37.6
million dwt in the first half, up 28 percent and 8.4 percent
respectively from the same period last year.
(Xinhua News Agency September 15, 2007)