Authorities have established a checks-and-balances mechanism to ensure the industry’s sustainable growth
China is closely monitoring its shipbuilding capacity to avoid an oversupply of production facilities in a global industry dominated by the country, according to an official from the China Association of the National Shipbuilding Industry (CANSI).
Tan Naifen, deputy secretary general of the government-backed organisation, said in an interview with the Post on Wednesday that authorities recognised the risks associated with reckless investments in shipyards. As a result, they had established a checks-and-balances mechanism to prevent boom-and-bust cycles and ensure the industry’s sustainable growth.
“The authorities and our association are adopting a cautious approach to shipbuilding capacity, even though the industry is currently performing well [because of] our manufacturing strength and a complete supply chain,” she said.
“We are striving to strike a balance between capacity and orders [for new vessels].”
