Lately Chinese government has raised bank reserves and interest on loan several times, which led to banks' loan downsizing and more-troubled local shipbuilders and marine equipment manufacturers, in the end.
Global financial crisis has put global shipping market into trouble and European financial crisis had shipowners reduce newbuilding orders.
Now China's major yards hold most of uilding orders and export newbuildings centered shipbuilders came to a deadlock.
Government's recent macro-economic policies made difficult circumstances of tightened financing conditions and increased labor costs, leading to owners ordering fewer new vessels.
In case of Jiangsu province where shipping and shipbuilding industries are prevailed, some banks take time off shipbuilding finances, the lowest price of processing-on-commission for newbuilding increased from CNY 3,100 ($484) per deadweight in 2009 to CNY 4,000. Also, owners' expenses including lending rates rose by 40% from two years ago.
Shipbuilding industry's slump incurs marine equipment's slowdown as well, recording turnover of only one third on the boom period.
Facing with difficult circumstances, China is raising its voice to have a policy improvement of shipbuilding and marine equipment's development and make a steady progress for high technology.