In the first half of 2013, global shipping and shipbuilding market had continued depression despite recovery of newbuilding orders. China’s shipbuilding and allied industries saw both leading shipbuilding indexes and economy indicator go downwards and shipbuilders came to confront crisis under difficulties in construction, delivery, new order, financing and profit making. Needless to say, international competition got fiercer.  
According to the latest report from the China Association of the National Shipbuilding Industry (CANSI), under this circumstance, China’s new government is aggressively providing lots of support and this aid is seen to be playing a critical role in the growth of Chinese shipbuilding and allied industries, corporates’ restructuring, business upgrade and so on.
Together with a recovery trend of newbuilding market seen in the first half of this year, Chinese shipbuilding industry also showed relatively good performance. Several leading builders turned out to have found a breakthrough of recession in sectors like LNG carrier, large containership and energy-saving, eco-friendly vessel through pushing forward with changes in business structure.
In addition, offshore market was continuously welcomed during the same period and China is said to have succeeded in improving its market share through putting efforts into enhancing competitiveness in offshore facility sector.
According to tentative data of CANSI, China gained orders for 24 units of drilling platform worth around $5.5bn in total in the first half of the year, which accounts for 54.2% and 41.2%, each in terms of number and value.
Under crisis situations, Chinese shipbuilders tried to reduce risk factors by turning their eyes to non-shipbuilding sectors and several leading large companies conducted M&A aggressively.
However, despite these efforts, the new order increase is not contributing to market recovery and Chinese shipbuilding industry is still having shocking problems, such as deteriorated situation that companies are confronting due to a rise in ship construction cost, financial crisis followed by financial institutions’ credit contraction policy in their shipbuilding sector, depreciation of yen and won with appreciation of yuan and so on.
The margin of newbuilding price is still difficult to improve on the grounds that securing liquidity is very tough due to heavy-tail payment, debt crisis and etc. and China is at a disadvantage in newbuilding competition because of unfavorable currency situation.  
Other than these problems, restructuring issue, lacking technology skills and etc. are emerging as Chinese shipbuilding industry’s existing problems, according to CANSI.