The Chinese government is seen to announce new and stronger support measures for shipbuilding industry soon.
The Economic Information of China reported on July 3 that a ‘Three-Year Plan to Strengthen China’s Shipbuilding Industry’ is in the final stage of mediation, jointly provided by the three Chinese government agencies, the National Development and Reform Commission, the Ministry of Finance and the Ministry of Industry and Information Technology.
The Chinese government has prepared new support measures, requested by the China Association of the National Shipbuilding Industry (CANSI) and etc. from last year however the body postponed an official announcement facing a criticism that it supports insolvent state-owned companies.
The core of the measures this time is that the government would encourage replacing old vessels aged more than 15 years and offer 20% of subsidy out of the national treasury for the vessels built at domestic yards.
Chinese shipbuilders are giving a welcome to the government’s such move, expecting it would help ease struggling yards’ financial crunch.
Some say, however, restructuring caused by the natural market force might be interrupted due to the governmental supports, which could have a negative impact on the whole industry.