Latest news with #CSSC
Newsweek
2 days ago
- Business
- Newsweek
China Challenges Trump's US Shipbuilding Dream
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. China's top two shipbuilders are finalizing a merger that began in 2019, creating the world's biggest shipbuilding company. The $16 billion deal is expected to further widen China's lead over the United States, as President Donald Trump pushes to revive the nation's stagnant shipbuilding industry. Newsweek reached out to the White House via email for comment. Why It Matters China has vaulted to the forefront of global shipbuilding over the past two decades. The country's largest state-owned shipbuilder, China State Shipbuilding (CSSC), delivered more commercial vessels by tonnage in 2024 than the entire U.S. shipbuilding industry has produced since the end of World War II, according to Washington, D.C., think tank the Center for Strategic and International Studies. China's shipbuilding capacity also increasingly extends to sea power. The People's Liberation Army Navy now boasts the world's largest fleet by hull count and is producing nearly three ships for every one launched by the U.S. Navy, according to Admiral Samuel Paparo, head of the Indo-Pacific Command. What To Know This week, the CSSC is absorbing the country's second-largest shipbuilder, China Shipbuilding Industry Corporation, with trading in both companies' shares suspended on Tuesday. Together, the two companies accounted for nearly 17 percent of the global market in 2024, according to data on new orders from maritime analysis firm Clarksons Research. Originally part of the same organization, the two firms were split in 1999 under Chinese Communist Party reforms aimed at introducing limited competition among state-owned enterprises. Beijing hopes the merger will reduce costs and cushion the blow of U.S. trade actions. The world's largest containership, built by Hudong-Zhonghua Shipbuilding Group, in Rotterdam harbor, Netherlands, on August 12, 2022. The world's largest containership, built by Hudong-Zhonghua Shipbuilding Group, in Rotterdam harbor, Netherlands, on August 12, media have hailed the deal as a step to eliminate inefficiencies, optimize resource allocation, and strengthen China's prospects in the global shipbuilding market amid geopolitical tensions and competition from competitors such as South Korea and Japan. "In recent years, the U.S. has launched crackdowns against China's shipbuilding industry, such as the so-called Section 301 action targeting China's maritime, logistics, and shipbuilding sectors, and the port fee plan," said the Global Times. This Trump administration has begun phasing in new port fees on Chinese vessels, claiming unfair trade practices and state subsidies. These measures appear to be having an effect. According to global trade association the Baltic and International Maritime Council, China's share of new shipbuilding orders declined to 52 percent from 72 percent in the first half of this year. What People Are Saying Tom Shugart, an adjunct senior fellow at the Center for a New American Security, told Newsweek: "China's already massive shipbuilding capacity remains under a single, state-controlled enterprise. "That scale, coupled with the integration of military and commercial production, will remain a central enabler of China's naval expansion—and a key factor in the eroding U.S.–China maritime balance." Xu Yi, an analyst at Shanghai-based risk management firm Haitong Futures, told the South China Morning Post: "This merger marks the largest strategic restructuring in China's shipbuilding history, aimed at optimising resource allocation and enhancing competitiveness in the global market." President Donald Trump said in his March 6 address to Congress: "We used to make so many ships. We don't make them anymore very much, but we're going to make them very fast, very soon. It will have a huge impact." What Happens Next Trump has pledged to "resurrect" both commercial and military shipbuilding in the United States, lamenting that only 0.2 percent of the world's ships are built domestically compared with nearly three-quarters in China.
Hindustan Times
2 days ago
- Business
- Hindustan Times
China Creates World's No. 1 Shipbuilder, Driven by Rivalry With U.S.
A $16 billion merger of two state-controlled shipbuilders in China is set for completion this week, creating the world's biggest shipbuilder while the U.S. searches for a path back into the business. American shipbuilders are playing catch-up after decades of maritime-industry decline, though President Trump's ambitious plans to revive American shipbuilding have hit snags recently. In the shorter term, Trump's threat to impose higher fees on ships made in China is giving South Korean and Japanese rivals an opening to win back market share. The Chinese champion is called China State Shipbuilding, or CSSC. This week it is scheduled to absorb its merger partner, China Shipbuilding Industry, and take the sole listing on the Shanghai Stock Exchange after regulators recently approved the deal. The merged company hopes to use its bulk to cut costs and help it ride out industry turmoil brought on by Trump's moves. The two companies were originally one and split up in 1999, when the government wanted to promote competition. These days, Beijing is looking to consolidate state-led companies in sensitive industries, particularly those connected with the military. CSSC's main business is commercial, but it is also an important contractor for the Chinese navy. The company it is absorbing designed and built China's first homegrown aircraft carrier, the Shandong. The company said the merger will allow it to better fulfill the navy's need for advanced equipment. 'This is a key milestone in China's long-term push to dominate global shipbuilding,' said Matthew Funaiole, an analyst at the Center for Strategic and International Studies in Washington. Together, the companies accounted for almost 17% of the global market last year, based on new-orders data from Clarksons Research. The merged company's combined order book will total more than 530 vessels and 54 million deadweight tons, the most in the world, with an annual revenue of around $18 billion, based on the latest annual reports. 'It strengthens Beijing's ability to execute its military-civil fusion strategy,' Funaiole said. 'Commercial and naval production are increasingly integrated, sharing technology, talent and infrastructure.' Beijing set its sights on dominating the shipbuilding industry decades ago, and now Chinese shipbuilders make up more than half of the global market. China-built ships accounted for about 55% of global tonnage last year, compared with less than 0.05% for the U.S., data from the United Nations show. China possesses 232 times the shipbuilding capacity of the U.S., according to the U.S. Navy. But recent data suggest China is facing rougher times because the prospect of U.S. port fees on Chinese-made ships has prompted owners to look at non-Chinese shipyards. In addition, Trump's tariffs and countries' focus on domestic supply chains have raised the specter of less global trade overall, meaning fewer ships would be needed to carry goods. Singapore-listed Yangzijiang Shipbuilding, China's biggest private yard, received orders for 14 ships worth $540 million in the first half of 2025, compared with 126 vessels worth $14.6 billion for all of last year. Clarksons data show global new ship orders fell 48% year on year in the first half of 2025. Yangzijiang said the sector faces 'macroeconomic uncertainties and geopolitical tensions.' Meanwhile, smaller rivals in Japan are looking to reclaim market share after decades of being pushed into a corner by lower-cost Chinese and South Korean rivals. Imabari Shipbuilding President Yukito Higaki, who is also head of the Shipbuilders' Association of Japan, said in June that the country aimed to raise its market share to 20% by 2030 from around 9% currently. The association is 'uniting Japanese ship and vessel companies under an 'All Japan' strategy to counter China and South Korea,' he said. Japan commanded around half of all shipbuilding output in the 1990s. A proposal in June from Japan's ruling Liberal Democratic Party calls for extensive subsidies for local shipyards to protect national security, including a $6.7 billion public-private fund. 'If we fail to act now, Japan risks losing its shipbuilding industry entirely, as Europe and the United States did,' the party said. China won't give up easily, said Kenneth G. Huang, a professor at the National University of Singapore who studies Chinese state-owned enterprises. 'Shipbuilding is a core capability that China wants to build,' he said, 'and the rivalry with the U.S. is going to push them to upgrade faster.' Write to Clarence Leong at and Costas Paris at
Yahoo
3 days ago
- Business
- Yahoo
China will merge CSSC and CSIC to create shipbuilding giant
China has merged two of its giant state-owned shipbuilding firms to create an RMB 700 billion ($97.4b) company. China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation (CSIC) had previously been one state-owned enterprise (SOE), but were split in 1999. After months of discussions and rumours, the firms were again made one in a ceremony in Shanghai. The new CSSC will control as much as 21% of the global shipbuilding industry, and Beijing hopes the new megacompany will be a more efficient challenger across the civil, military, and offshore energy sectors. As competition is likely as fierce as it has ever been in the Asian shipbuilding market, the aim of this merger is to cement China's place above South Korea as the dominant force in the region. Over the 25 years the shipbuilders have been split into the northern Dalian-based CISC and the southern Shanghai-based CSSC, a domestic rivalry developed, according to China Decoded. Reducing this internal competition and focusing on growth compared to international rivals is increasingly vital for the Chinese industry as the US has become more assertive in anti-China policies during the second Trump administration. 'This merger marks the largest strategic restructuring in China's shipbuilding history, aimed at optimising resource allocation and enhancing competitiveness in the global market,' said Xu Yi, an analyst at Haitong Futures told South China Morning Post. It is understood that Tuesday 12 August will be the final day CSIC shares will be available for market trading on the Shanghai Stock Exchange, before the company is folded into China CSSC Holdings. The move has several potential downsides for the Beijing government and the new larger company. Firstly, it will almost certainly attract the ire of international anti-monopoly bodies. While these regulators do not have the power to break up the Chinese megafirms, they could recommend countermeasures to other governments which could restrict the business CSSC can do. The move could also consolidate military and civilian shipyards, which could lead to further international restrictions or tariffs aimed at the industry, such as increased port fees for Chinese vessels, or even higher tariffs. "China will merge CSSC and CSIC to create shipbuilding giant" was originally created and published by Ship Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Time of India
4 days ago
- Automotive
- Time of India
328 e-buses approved for Chandigarh under central scheme
Chandigarh: In a landmark move for sustainable urban mobility, Chandigarh has emerged as the top beneficiary under the Centre's PM-eBus Sewa Scheme, securing approval for 328 new electric buses—the highest allocation among 20 cities across India. The decision was made by the Central Sanctioning and Steering Committee (CSSC) of the Ministry of Housing and Urban Affairs (MoHUA), which sanctioned 2,079 e-buses nationwide. While cities like Tirupati and Jaipur received 300 buses each, Chandigarh stood out not only for its numbers but also as the only Union Territory to make the cut. This massive boost aligns perfectly with Chandigarh's vision to phase out diesel buses and transition to a fully electric fleet. With 80 e-buses already on the roads and 328 more on the way, nearly the entire Tri-city fleet of 400 buses will soon be electric—ushering in a new era of clean, quiet, and cost-effective public transport, officials said. And the best part? Not a single rupee will be spent by the Chandigarh administration on procuring these buses, as the funding comes directly from the central government. Sources in the administration revealed that 100 additional e-buses are pending approval in the Punjab and Haryana high court. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cofradia: Unsold Sofas Prices May Surprise You (Prices May Surprise You) Sofas | Search Ads Search Now Undo Once cleared, these will further expand the fleet and open up new routes to serve more passengers. The ministry's approval, formalized in a memorandum dated August 6, follows a meeting held on July 24, 2025. Of the 4,886 buses requested by states and UTs, only 2,079 met the eligibility criteria—and Chandigarh led the pack. Kataria's push pays off The approval follows a strong pitch by Punjab governor and Chandigarh administrator Gulab Chand Kataria, who met the Union minister of housing and urban affairs last month to advocate for the buses. With many of CTU and CCBSS's diesel buses nearing the 15-year retirement mark, the timing couldn't be better. Mohali joins the green ride The Mohali district in Punjab also received the sanction of 100 electric buses under the SAS Cluster in the CSSC meeting of the MoHUA. Only district in the state to receive the ministry's nod, Mohali will have an electric bus service for passengers. Besides Chandigarh and Mohali, no other city or district in the region (Punjab, Haryana, and Himachal Pradesh) received approval for electric buses. **Box for Graphic: Eligible Cities as per Pre-Qualification Criteria** | Cities | States | Buses Sanctioned | |--------|--------|------------------| | Bikaner | Rajasthan | 50 | | Sikar | Rajasthan | 50 | | Jaipur | Rajasthan | 300 | | Alwar | Rajasthan | 50 | | Jodhpur | Rajasthan | 25 | | Warangal | Telangana | 100 | | Nizamabad | Telangana | 51 | | SAS Nagar (Cluster) | Punjab | 100 | | Gandhidham | Gujarat | 80 | | Navsari | Gujarat | 50 | | Vadodara | Gujarat | 150 | | Gandhinagar | Gujarat | 50 | | Shillong | Meghalaya | 5 | | Indore | Madhya Pradesh | 120 | | Bhopal | Madhya Pradesh | 95 | | Jabalpur | Madhya Pradesh | 100 | | Satna | Madhya Pradesh | 20 | | Dewas | Madhya Pradesh | 55 | | Tirupati | Andhra Pradesh | 300 | | Chandigarh | Chandigarh | 328 | **Total: 2,079** MSID:: 123218519 413 | Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
South China Morning Post
06-08-2025
- Business
- South China Morning Post
China's mammoth merger of shipbuilders nears – and so do the industry implications
China's two major shipbuilders appear to be mere days from completing a merger that will form the largest publicly listed shipbuilding company in the world. Advertisement The China Shipbuilding Industry Company announced that Tuesday will be the final trading day for its shares before the company is absorbed by China CSSC Holdings. Analysts have deemed the move a strategic masterstroke in Beijing's broader industrial and military ambitions, particularly as the United States increasingly views China as a rival in multiple sectors. 'This merger marks the largest strategic restructuring in China's shipbuilding history, aimed at optimising resource allocation and enhancing competitiveness in the global market,' said Xu Yi, an analyst at Haitong Futures. She explained that the merger, which covers the three core businesses of military equipment, commercial vessels and marine engineering, will focus on phasing out low-efficiency docks while concentrating on high-end vessels. Advertisement CSSC Holdings, the combined entity, will offer a comprehensive range of business operations, with total assets exceeding 400 billion yuan (US$55.6 billion) and annual revenue surpassing 130 billion yuan, Founder Securities said in a July note after the merger was greenlit by the Shanghai Stock Exchange.
