"Double Boxing" attack, together to solve the problem of overcapacity

In response to the ills of a serious overcapacity in shipbuilding, the "tangible hand" hit hard. The "Guiding Opinions on Resolving the Contradictions of Severe Overcapacity in Production Capacity" issued by the State Council has unprecedented emphasis on the degree of overcapacity in the shipbuilding industry, the severity of the assessment program, and the comprehensive degree of policy measures.
At present, no matter what standard or method is used to judge, the overcapacity of shipbuilding is an indisputable fact. According to the statistics of the Ministry of Industry and Information Technology, the capacity utilization rate of China's ships in 2012 was 75%. A large number of shipbuilding enterprises are faced with problems such as “difficulty in receiving orders”, “difficulty in delivery of ships”, “difficulty in financing” and “difficulty in profitability”. The news that ship companies have stopped production and went bankrupt has been reported in newspapers. These facts show us that the overcapacity of ships not only jeopardizes the healthy development of the shipbuilding industry, but also restricts the transformation of China from a shipbuilding power to a shipbuilding power, and even affects the overall development of the national economy. Therefore, resolving the contradiction of overcapacity has become a top priority for the shipbuilding industry.
In fact, the risk of overcapacity in shipbuilding has been long-standing. Since 2003, the international shipping market has entered a period of high prosperity, and new ship orders have emerged. From 2003 to 2005, the global average annual new ship order volume was 160 million DWT. In 2007, the global new ship order volume reached 270 million DWT. China's orders for 110 million DWT in the same year directly contributed to the rapid growth of China's shipbuilding capacity. In particular, some local governments have introduced preferential policies for the development of the local economy, actively attracting investment at home and abroad, encouraging and promoting private and foreign shipbuilding projects, and boosting the growth of production capacity.
The rapid expansion of shipbuilding capacity has attracted the attention of relevant state departments, such as the Medium and Long-term Development Plan for Shipbuilding Industry (2006~2015), the Shipbuilding Industry Adjustment and Revitalization Plan, and the 12th Five-Year Plan for Shipbuilding Industry. The plan all proposed to strictly control the shipbuilding capacity and pay attention to the risk of overcapacity in shipbuilding. However, since the order quantity of new ships in China was always higher than the completion of shipbuilding, the production guarantee factor of enterprises has been maintained at a high level. The prosperity on the surface of the ship market has covered deep problems such as overcapacity and unreasonable structure of the ship, even in 2008. After the outbreak of the international financial crisis, some places are still "opposing the trend" to launch the shipbuilding project, further aggravating the risk of overcapacity in China's shipbuilding.
Sure enough, due to factors such as the downturn in the shipping market, global orders for new ships are declining. From 2009 to the beginning of this year, the order volume of new ships in China has been lower than the completion of shipbuilding. Shipbuilding enterprises generally face the shortage of orders. The problem of overcapacity in shipbuilding has finally turned from anxiety to reality. The profits of the shipbuilding industry have fallen sharply. The situation of corporate bankruptcy also began to appear. This series of problems has accumulated together to form a huge "negative energy". Once it breaks out, it will bring immeasurable losses to the development of China's shipbuilding industry.
As far as the development of China's shipbuilding industry is concerned, if the lagging effect of the international financial crisis is “external troubles”, then the overcapacity of shipbuilding is “internal worry”. "External troubles" affect the breadth and breadth of China's shipbuilding industry development, while "internal worry" restricts the depth and height of China's shipbuilding industry development. "Internal worry" is incomprehensible, and "external troubles" are difficult to level. In view of the situation of overcapacity in shipbuilding, the "Guiding Opinions" combines the resolution of overcapacity contradictions with the adjustment of structure, transfer mode and promotion, and points out the direction for the restructuring and transformation of China's shipbuilding industry. At the same time, in response to the current structural problems of low-end overcapacity and high-end production capacity in China's shipbuilding industry, the "Guiding Opinions" put forward the requirements of "digesting batches, transferring batches, integrating batches, and eliminating batches" of excess capacity, reflecting the requirements. Strictly control the principle of combining incremental and adjusted optimal stock. It can also be seen from this that it is only a means to resolve the contradiction of overcapacity, and it is fundamental to truly improve the competitiveness and innovation of the shipbuilding industry.
Frozen three feet, not a cold day. Resolving the contradiction of overcapacity will be a severe challenge that China's shipbuilding industry must face in the future for a long time to come. In fact, the law of market operation itself does not support the existence of backward production capacity. At present, the trend of new shipbuilding orders to concentrate on superior shipbuilding enterprises has become more and more obvious. Many shipbuilding enterprises that produce low-end products have long been empty-handed. The introduction of the "Guidance Opinion", under the premise that the "invisible hand" of the market has already played a role, further adds the synergy of the government's "tangible hand". The "double boxing" attack will surely open a new breakthrough for the fundamental solution to the problem of overcapacity in shipbuilding, thus creating a healthy and developed shipbuilding industry.


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