China's shipbuilding industry is large but not strong, and independent innovation and establishing an integrated industrial chain are top priorities, an official told.
"Although China overtook South Korea and Japan to become the world's largest shipbuilder in terms of shipbuilding capacity, overtaking orders and new orders, the country's high value-added shipbuilding ability is far behind the two countries," Qian Xinnan, deputy director of the China Association of the National Shipbuilding Industry (CANSI), said.
China has been the world's largest shipbuilder since 2010.  
Statistics filed with the Ministry of Industry and Information Technology show from January to December 2010, China's shipyards produced a total volume of 65.6 million deadweight tons, an increase of 54.6 percent from the previous year. And their newly received orders as of the end of last year exceeded 75.23 million deadweight tons, accounting for 54 percent of the world's total production volume.
"We must recognize the data is just about the volume of deadweight tons (a ship's carrying capacity with crew and supplies), not about their total value (the ships)," Qian said.
In the first quarter, South Korean shipbuilders signed new orders for 90 ships with a total worth of $12.8 billion. China received orders for 88 units with a total value of only $3.5 billion, according to the latest data from South Korea's Ministry of Economic Knowledge.
"China should complete its whole oceaneering chain, including the high-tech corollary equipment used on ships," Qian said.
"Some automated electronic devices on China-made ships, for instance, are still imported from overseas," he told。
After years of development with the advantage of low labor costs, China's shipbuilding industry entered a period requiring more initial investment and intensive management. So, a significant amount of money needs to be invested in R&D during the process, with less consideration for short-term returns, according to Qian.
Qian also encouraged domestic shipbuilders to look "positively" for outbound investment opportunities and study advanced technology, citing an acquisition case between Chery and Volvo as a successful example of a domestic manufacturing company going outside the country.
"So far, few Chinese shipbuilders have begun outbound expansion while South Korea, for instance, is cooperating with countries like Russia and Brazil," Qian said.
China's shipping industry will experience a structural readjustment during the 12th Five-Year Plan period (2011-2015), Qian said.