Filenews 19 August 2025
China is pushing ahead with an ambitious plan to turn Changxing Island in Shanghai into a global shipbuilding hub by 2027, targeting an annual turnover of 120 billion yuan (about $17 billion). The project builds on the activities of Hudong-Zhonghua and Jiangnan, subsidiaries of China State Shipbuilding Corporation (CSSC), and includes investments in LNG carriers, cruise ships and car carriers.
High-tech investments
The new $2.5 billion Hudong-Zhonghua shipyard will increase the production capacity of LNG carriers from six to ten ships per year. The plan also provides for research centres, new propulsion systems and low-emission fuels, boosting the transition to green shipbuilding.
Risk of oversupply in a difficult market
The announcement comes at a time when the global shipbuilding industry is in decline. Ship orders fell by 54% in the first half of 2025, while LNG carriers were limited to just 44 orders from 158 in 2023. Shanghai therefore takes the risk of creating an oversupply in a shrinking market.
Section 301 and the U.S. Response
China's plan is linked to the U.S. Section 301 investigation, which concluded that Chinese practices in shipbuilding are "unreasonable and discriminatory." The U.S. has announced targeted fees for Chinese ships calling at U.S. ports, effective from October 2025. The measures are also being extended to digital logistics platforms, with Washington considering data to be of strategic importance.
The publication of the Chinese plan in the summer of 2025, a few months after the American announcements, is clearly political and symbolic. The CSSC is attempting to show that it will remain self-sufficient by powering both China's merchant shipping and navy.
The consequences for Europe and Greece
This strategy directly affects Greek shipowners, who have ordered LNG carriers and car carriers from Chinese shipyards. These ships will incur additional costs in U.S. ports, influencing decisions on new orders. As an alternative, South Korean and Japanese shipyards are gaining ground.
Shanghai, with $17 billion in investments, is attempting to emerge as a global shipbuilding hub, in a move that goes beyond industrial boundaries and is part of the U.S.-China geopolitical confrontation with implications for international shipping.
