In Europe, some segments of the shipbuilding industry are heavily dependent on China. Europeans also fear the lower prices the Chinese charge

China reaps the rewards of billionaire investments in technology and industry in recent decades. Today, the Asian country has a huge share in the global maritime market. Knowing this, the Association of German Shipbuilding and Ocean Industries (VSM), issued a statement warning the German and other European governments of the strong dependency from China. 

The Association's criticism of China goes back a long way.  

It is not new that the association warns about the prices that China charges in its shipyards, gaining a huge advantage in the market in relation to its competitors. VSM also highlighted that Europe's maritime landscape is dependent in the same way that Europe depends on gas from Russia. 

The association made a not very encouraging forecast for the next 10 years in Europe. According to her, unless there is a major change in the scenario of shipbuilding on the continent, European countries will lose the ability to build merchant ships on any scale. If so, the benefit of Chinese it will be even bigger. 

China offers more advantageous prices 

Even with record demand being observed in some segments of the shipbuilding market, China is managing to offer prices that are up to 30% lower than those charged 15 years ago. During this period, the average Chinese salary increased by 400%. 

Global demand for new ships doubled, however orders for new ships placed in Europe were down 20%. Currently, shipbuilding companies in Europe are heavily dependent on China.  

China's importance in global shipbuilding 

China is the largest builder of large ocean vessels in the world. Its main shipyard is the China State Shipbuilding Corporation (CSSC), which controls around 21% of the global shipbuilding market.  

As reported by Al Jazeera, China gained this importance in the global market after Beijing merged its commercial and military shipyards. In this way, the People's Republic became a great rival of South Korea and Japan, two other giants in the sector. 

According to CSIS data, between 2019 and 2021, the four shipyards controlled by the CSSC received orders for at least 211 commercial ships, with foreign companies placing 64% of orders. China produces 96% of all containers and 80% of all cranes.