Chinese economy solid amid turbulence

Shipbuilding, consumption, trade all show strong signs of a pickup in Q4

On Sept 12, the Emden, South China's first dual-fuel pure car truck carrier, a giant-sized, purpose-built ship, was delivered for use at a ceremony in Guangzhou, capital of Guangdong province.

Built by Guangzhou Shipyard International Co Ltd and China Shipbuilding Trading Co Ltd for Norway's SFL Co Ltd, the vessel can carry 7,000 vehicles at one go.

"We have already received more than 50 export orders, with the production plan scheduled into 2027," said Liu Hui, chief accountant and chief legal counsel of Guangzhou Shipyard International.

In the first half of this year, the company's newly received orders increased by 90 percent year-on-year, GSI data showed.

Located at the mouth of the Pearl River, GSI, a subsidiary of China State Shipbuilding Corp, is one of the major shipbuilding bases in the country. With an annual shipbuilding capacity of 4 million deadweight tons, the company has received a large number of orders from countries involved in the Belt and Road Initiative such as Algeria and Greece.

In April, the world's largest luxury roll-on/roll-off passenger vessel, built by GSI for Italy's Moby Line company, set sail. The vessel, dubbed the Moby Fantasy, is designed for more than 2,500 passengers and 800 vehicles.

During the past few years, GSI witnessed a significant jump in its output value, rising from 6 billion yuan ($820 million) in 2018 to 12.9 billion yuan in 2021, with its core business reporting 25 million yuan in profits.

Data from the Ministry of Industry and Information Technology reflected the official snapshot of the sound development of China's shipbuilding industry in the first half of this year, with double-digit increases in output, new orders and holding orders.

The country's shipbuilding output hit 21.13 million dwt during the period, up 14.2 percent year-on-year and accounting for 49.6 percent of the world's total.

New orders, another major indicator of the shipbuilding industry, jumped 67.7 percent year-on-year to 37.67 million dwt, with a global market share of 72.6 percent.

The sector's holding orders totaled 123.77 million dwt at the end of June, expanding 20.5 percent year-on-year for a 53.2 percent share of the global market.

Liu said the improvement in the sector is largely due to the flourishing maritime industry, the BRI and the country's solid steps to foster high-quality development of the manufacturing sector.

He also said the past few years witnessed a surge in market demand for car carriers, thanks to the growth of global auto trade, especially China's booming auto exports. And GSI has grabbed the opportunities — 25 orders for car carriers — with both hands.