The Chinese government has released a restructuring measure towards its shipbuilding industry which is one of oversupplying industries, and decided to strictly control the enlargement of production facilities over the next three years.
On August 4, the State Council of China unveiled 'An Implementation Plan for Accelerating Restructuring of Shipbuilding Industry, Industrial Conversion and Upgrading (2013-2015)' to reduce overcapacity seen in the facilities of shipbuilding industry.
According to the governmental plan, the enlargement of production facilities of shipbuilding industry will be strictly regulated by 2015 and yards with poor competitiveness stemming from deteriorated facilities are to go on M&A. Also, falling behind facilities will be disposed following market functions.
Focusing on major large corporations, the government will proceed with merger and grouping of allied shipbuilding companies and regulation of total quantity will be adopted for shipbuilding facilities, aimed at freezing new investment. Meanwhile, small and medium sized yards will be encouraged to change their business into ship repair, scrapping and non-shipbuilding sectors.
Alongside, the State Council of China will give variety to the demand structure of shipbuilding to induce various new contracts for high-end vessels.  With this, the governmental department will realize technological innovation and establish a groundwork for competitive companies to survive, with securing major shipbuilding technologies.
Furthermore, the government is seeking to intensively foster industries of offshore structure, shipbuilding materials and equipment, together with expanding and offering ship financing, such as buyer credit and so on, for overseas owners to purchase ships.