Chinese shipyards' competitive edge is getting 'blunt' in process of time due to cost increase and lack of high-value ship technology and experience.
China Association of National Shipbuilding Industry (CANSI) revealed that 313 shipbuilding companies fell into losses of the 1519 companies above certain level in the first quarter of this year. The combined losses came to CNY 1.11bn ($171m). 
Chinese yards are now faced with two major difficulties. One is a rise in building costs. Shipbuilding steel plate prices rose by 8.74% (by CNY 321 per ton) by April this year, labor cost jumped by 15% on average, and CNY appreciated by 1.85%.
Another big problem is that global newbuilding demand is changing in structure. Chinese new ship order intakes decreased in the first half of this year as newbuilding ordering centered on high-value vessels like ultra-large containerships, drillships, LNG carriers and other offshore facilities.
Chinese new orders rose in January-April compared to a year ago but newbuilding deliveries surpassed new orders, leading to reduced orderbook.
CANSI forecast Chinese shipyards would face further difficulties for a while as high-value ships lead global newbuilding market and the yards face higher cost pressure.