Plan to sacrifice growth for quality making its mark

摘要

The outlook for Chinese shipping and shipbuilding over the next two or three years can be described as centrally-planned turmoil. Having done their jobs under the previous globalisation-orientated Five-Year Plans, both industries will be consolidated and streamlined under the latest inward-looking economy plan. This is already taking place, with the consolidation of COSCO and China Shipping to form China Lines, but this is just the start. By 2020, each shipping sector will be managed by one main SOE controlling a huge fleet composed of internal merger and consolidations, and possible significant overseas purchases. A similar process will take place in the shipyards. If all goes to plan (pun intended), by the 100th Anniversary of the Chinese Communist Party in 2021, the leaders of the party will direct control over the largest shipping and shipbuilding entities across all sectors.