In the government’s 11^th five-year plan, Chinese shipbuilding realized leaping development to grow as one of the shipbuilding giants in the world. However the industry development in the 12^th five-year plan would be more challenging and complex.

Chinese shipbuilding industry gained gratifying results during the 11^th five-year development plan and the three main indices of the industry made great breakthrough in 2010. The newbuilding output, the new orders and the order book hit 6.56m dwt, 7.532m dwt and 1.91dwt, accounting for 43.6%, 54.8% and 41.2% respectively of the global total. However, behind the excellent performance, Chinese shipbuilding is confronted with more severe situations and challenges.

Director the ship department with MIIT Chen Yingtao put forward that the 12^th five-years would be the essential period for China’ shipbuilding industry to transform from a “big” shipbuilding powerhouse to a “strong” shipbuilding giant. Currently Chinese shipbuilding industry encounters six main challenges to overcome: uncertainty of domestic and economic development, long-standing demand shortage in the international market, gradually intensified competition among shipyards, the release of new international shipbuilding regulations and policies; increasing raw materials and labor cost as well as inflation pressure and price instability from appreciation of the yuan.

Nevertheless, to our delight, Chinese shipbuilding industry is in growth under the sound domestic macroeconomic surroundings and good financing situations and still boasts its advantages in technology, capital and market. In the significant transformation period for China’s shipbuilding industry, it will focus on “three transformation”: the transformation from cost advantage to products advantage, from enhancing efficiency to developing innovation and from focusing on shipbuilding to coordinated development of shipbuilding, repairing and supporting industries.

The concrete development target of China's shipbuilding industry for the 12th five-year plan is to lift China's shipbuilding industry to the world best class with CNY 1trn ($153bn) in profit and 40% market share globally by 2015. In addition, China aims to strengthen its independent innovation capability by establishing meet more than 50 world famous brands which meet the international standards and lead the international market. At the same time, China will strive to realize industry structural optimization and upgrading by making China's top 10 shipbuilders to occupy over 70% market share of China's total and promoting 6 Chinese shipyards into the world top 10, as well as to promote industry modernization and supporting capability to a new level by realizing the below targets: localization rate of main ship types average equipment and facilities to exceed 80%, domestic market share of marine diesel engine, dock machinery and other equipments to pass 80% and the loading rate of self-owned brand marine equipments to reach 30%.