Net profit of Chinese shipbuilding less than 3%? Another core parts by Japan and South Korea, domestic replacement is not recognized

As early as 2014, the Korea Institute of Industrial Economics and Trade issued a report "The Rapid Development of China's Shipbuilding Industry and Its Enlightenment". Considering that China surpassed South Korea in 2012 to become the world's largest ship order country, the report pointed out that if China could complete the structural adjustment of the shipbuilding industry and greatly improve the quality, It will pose a threat to The Korean shipbuilding industry, which has a price advantage.

Since 2013, when global oil prices fell and orders for Marine equipment and new ships declined, South Korea has become the biggest victim of low-price competition between China and South Korea. South Korea's shipbuilding industry suffered a sharp fall in 2016, with the country's three largest shipbuilders reporting a combined operating loss of 8.5 trillion won ($7.28 billion), the first time all three have reported a full-year loss.

However, four years have passed, the final result of the global shipbuilding industry in 2020 shows that China accounts for 48.8% of the global shipbuilding orders, while South Korea accounts for 42%. If 17 LNG ship orders undertaken by Hyundai Heavy Industries and Samsung Heavy Industries at the end of 2019 are included, South Korea's actual order volume in 2020 is 8.19 million CGT, higher than China's 7.93 million CGT.