With Belt and Road Vitality,Export to Maintain Growth Momentum Shipbuilding Branch of China Chamber of Commerce for Import and Export of Machinery and Electronic Products

China ship export achieved good performance in 2018 as a result of great efforts of the national shipbuilding industry with strong support of various national policies and measures of stabilize foreign trade. China ship export totaled US$25.036 billion in 2018, a year-onyear growth of 10.2%.

I. Overview of China Ship Import and Export in 2018

In January-December of 2018,China ship export hit US$25.036 billion,up 10.2% YOY, the export structure optimization pushed up average export prices at 12.4% YOY. Container ship,bulk carrier and oil tanker maintained top three of China ship export, accounting for 23%, 22% and 14.5% respectively.

The steady development of the Asian overall economic situation contributed to the continuous growth of China ship export proportion, Asia maintained the position of the largest export destination at 24.1% YOY growth. European market made up 14.3%, down 18.9% YOY. Latin America accounted for 12.7%, a YOY growth of 109.6%. However, as the local economic development was short of power,social stability was in poor condition and US promoted trade protectionism, China ship export proportion in the European and North American markets showed a downward trend. The proportion of ship export to US declined from 4%-5% in previous years to the present order of 0.6%.

Specifically, from January to December, 2018, ships exported to Hong Kong totaled US$8.45 billion, accounting for 33.8%. Ships exported to Singapore totaled US$3.03 billion, accounting for 12%. Ships exported to Brazil totaled US$2.26 billion, or 9%.

In 2018, China's total ship imports were still small, but the increase was large, with the total amount of imported ships at US$1.99 billion, up 31% YOY. Among them, the total amount of ships imported in December was US$203 million, down 36.5% YOY.

II. Facing Favorable Conditions

Steady Growth of Foreign Trade Provides Good Conditions for Ship Import and Export

According to the data center of the Ministry of Commerce, China's imports and exports with countries along the“Belt and Road” enjoyed a good growth momentum in 2018. For the whole year,the total import and export volume to the countries along the ＂Belt and Road＂ was 8.37 trillion yuan, up 13.3% YOY, 3.6 percentage points higher than the overall national growth rate. The potential of trade cooperation is being released continuously,becoming a new driving force for the development of China's foreign trade.

Massive Investments in Ports and Terminals Boost Shipping

Since the outbreak of the international financial crises, China COSCO Shipping Group, China Merchants Group, Qingdao Port (Group) Co., Ltd., COFCO and other Chinese companies have pumped investments in ports and wharves of the Euro-Mediterranean area and deployed in the Asia, Oceania, South America markets, solving the problems of agricultural produce and energy transport and choke points. At present, China is already the world's largest country of ports. Among the top 10 container terminals in the world, China accounts for 7, and Shanghai port has been the first for many years. Nearly two-thirds of the world's top 50 container ports have Chinese investment. China imports a huge amount of food raw materials, iron ore, oil,coal and other commodities from overseas every year, which is bound to promote the development of the shipping industry,thus boosting the development of China's shipbuilding industry.

Ⅲ.Trend and Suggestions for 2019

1.Continue to Maintain a Small Growth

It is expected that China's ship exports will continue to maintain a small growth trend in 2019, and the growth rate may be the same as that in 2018.Container ships, bulk carriers and oil tankers will still be the main types of ships exported, and the proportion of container ships exported will still rise.The pattern of mainly Asian export markets will remain unchanged. The increasing technology, automation and intelligence of ships will increase the price of import and export ships.

2.Watch Market Change amidst Austere External Environment

Under the macroeconomic situation of unstable foundation of global economic growth and falling international oil prices,the incremental demand of shipping market and energy market for shipping capacity keeps declining.

In 2019, the international market environment of ship export is also facing the damage from trade protectionism.We should be highly alert to the negative impact of trade protection on the import and export trade of China's ship products and auxiliary equipment, pay close attention to the relevant changes in the international shipbuilding market, and nip in the bud. At the same time, we should continue to open up to the outside world, strengthen international production capacity cooperation in the shipbuilding industry, consolidate and enhance China's traditional advantages in shipping export, actively foster new competitive advantages in the international market,and strive to promote the steady and sound development of China's ship import and export trade.

3.Cooperation between Banks and Enterprises to Strengthen Technology R&D and Reserve

In the “cold winter” of the shipbuilding market, the government and industry organizations should vigorously implement the policy of“integration”, step up the bankenterprise cooperation, build a variety of financial service platforms with information symmetry and resource sharing for shipbuilding and marine equipment enterprises, help them raise funds through multiple channels, and promote the high-quality development of the shipbuilding industry.

At the same time, shipbuilding enterprises should further strengthen forward-looking technology R&D and technical reserve, adhere to the direction of intelligent development. Innovation,design and construction of clean energy ships and intelligent ships with higher technology levels have become the direction of current ship development,the future demand of international shipbuilding market and the guarantee for the strong development of China's shipbuilding industry, the enhancement of international competitiveness and the expansion of export market.