Open QuestionsTop China shipbuilding voice Li Yanqing on why the US industry can’t be rebuilt overnight
China’s national shipbuilding association official calls US port fees ‘absurd’ and politically motivated, while asserting China’s market lead is solid despite global fluctuations
Li Yanqing, executive vice-president and secretary general of the China Association of the National Shipbuilding Industry (Cansi), discusses the impact of US trade policies, global market cycles and China’s strategic pivot towards high-quality manufacturing.
As a shipbuilding veteran who also serves as chairman of the ISO/TC 8 ships and marine technology committee, which oversees international standardisation for shipbuilding and marine operations, Li is a prominent voice for China’s industry on the global stage.
The United States has its own road map, and the Chinese shipbuilding industry has no objection to the US revitalising its own sector.
However, from a professional standpoint, if anyone believes that investment alone can resurrect an entire industry, they may need a refresher course in the fundamentals of industrial economics.
According to traditional industrial economic theory, the rise and fall of shipbuilding are driven by three key factors: capital, labour and technological innovation. It is important to note that innovation can yield results only when built upon a solid foundation of capital and labour.
Shipbuilding is both a labour-intensive and capital-intensive industry – it demands infrastructure, land and natural coastline resources. Furthermore, the labour force required for modern shipbuilding demands increasingly higher levels of knowledge and technical skill. In this context, quality educational resources and training become indispensable.
In the arena of commercial vessel construction, the US is neither an athlete nor a coach in the global market
Whether American shipbuilding can be revitalised is, of course, a matter for the US. However, personally, I believe it is by no means an easy task.