10 years ago, the ship made in China for less than 10% of the global. Now, according to the load calculation, the scale of China's shipbuilding industry has been ranked first in the world.

The rapid development of Chinese shipbuilding industry is not accidental, but rather by the global financial crisis before the shipping industry to promote the prosperity of the. Due to the relatively low cost, and always for foreign buyers to provide attractive financing, China shipbuilding enterprises causing great competitive pressure on Japanese and South Korean counterparts.

Those incentives were a powerful catalyst in a recession, when global liquidity dried up, ship buyers sometimes default in payment. In addition, more and more Chinese owners tend to buy the ship in China, the development of China's shipbuilding industry has played a role in promoting.

Some analysts as the strategic transformation of china. "Over the past 150 years in the history of shipbuilding, always around commodity dependent countries." Barclays Capital (Barclays Capital) in Hongkong analyst Jon Wyndham (Jon Windham) said.

"China is the first major source of today's commodity demand. Therefore, the government of China from a strategic point of view, that for the need of national security, China must become a shipbuilding nation."

Under this decision, the Chinese government started an shipbuilding industry in 2009, launched a period of 3 years of stimulus, encouraging banks to the shipbuilding enterprises by the financial crisis lending, and to provide credit to foreign ship buyers

The plan's goal is: by 2011, the Chinese shipbuilding enterprises share in the global offshore engineering market reached 10%.

The Export-Import Bank of China (China ExIm Bank) to provide a total of 160000000000 yuan credit line to China's two biggest state-owned shipbuilding enterprise, in addition to providing loans to other shipbuilding enterprises.

Another reason is the government is keen to support the development of shipbuilding industry, shipbuilding industry is able to pull steel, marine engineering and other large industrial activity.

China Shipbuilding extremely competitive on cost, but also they have a reason for success.

China is not currently produce some complex types, such as LNG carrier (shipping liquefied natural of), but, in the bulk transport ship production relatively simple (used for carrying coal, iron ore and other) fields, most Chinese yards have perfected and flow. They are now in the market to occupy a dominant position.

However, with the development of global shipbuilding industry fell into a trough, the start of China's huge shipbuilding industry appears a little shake and crumble. Steel prices, excess capacity and the global freight at an extremely low level, have weakened the Chinese shipbuilding industry profit rate. For China shipbuilding industry can pull through this recession, analysts have different views.

"If the next two or three years there are more than 100 small shipbuilding factory closed down, I'm not surprised." Clarkson (Clarksons) Zhou Jiliang of chief of the newly established Shanghai shipping Broker's Firm (transliteration) said.

"But the industry will not have a big impact, because the large shipbuilding enterprises are mostly will all is well, and their total capacity accounted for about 85% of the whole industry."

He thinks, the changing market will force Chinese shipbuilding enterprises to increase R & D investment, to improve efficiency, strengthen the LNG ship and other complex ship production capacity.

Others paint a bleaker prospects. "China shipbuilding industry is actually a heap of sand up the castle." Future asset securities (Mirae Asset Securities) senior analyst Sokje Lee said.

"No one cares about the real profit data of Chinese shipbuilding company. When the order of everfount, it is easy to hide. However, if there is no order, they will see easy cash flow. In general, the Chinese shipbuilding company, I doubt the real profitability." He thinks, rising labor costs in China and international steel prices higher, will cause a heavy blow to Chinese shipbuilding enterprises.

A big problem is that China's credit tightening will have much impact, and whether the government's efforts to cool the economy will lead to strategic industries such as shipbuilding industry to reduce the loan.