THE volume of incredulous US headlines complaining about China’s unfair overnight rise to maritime dominance over the past few decades have rather distracted many from the quite remarkable achievements of China’s industry of late.

Much to Donald Trump’s annoyance, China has grown its share of the global shipbuilding orderbook at a blistering pace over the past two years, even by China’s own superlative-defying standards.

Last year alone saw China grow its share of the global orderbook by nearly another 10%.

As far as the US is concerned, Beijing’s targeted dominance of the maritime sector undermines fair, market-oriented competition, increases economic security risks and makes the revitalisation of US shipping look farcical by comparison.

That ‘unreasonable’ stranglehold that China has on shipbuilding was built on years of political support, both in terms of policy and subsidies, that would make most national shipping bodies weep with envy (London Shipping Week attendees take note).

Ignore the politics for a moment and it’s hard to objectively argue against the fact that China has refined the industrial process of shipbuilding to a near art form.

But this is not just about the scale and quality of the shipbuilding industry it has carefully evolved; China Maritime Inc is the shipping superpower, and that now extends to almost every aspect of the business.

The annual maritime insurance confab taking place out in Singapore this week has acknowledged that China is now a core hull & machinery market in its own right, with a steady double-digit percentage point slice of the pie.

Partly that’s an extension of its fleet dominance, but this is also strategic.

China has been pushing to enhance its position in marine insurance for several years now and the rapid growth in hull insurance is mirrored by the China P&I Club’s ambitions for overseas expansion.

There is economic security in being able to rely on strong domestic markets, but China is pursuing strength at every level of an industry they recognise as globally interconnected.

Where the US is exiting multilateral efforts, China is doubling down and visibly so in maritime.

China is the single most powerful state inside the International Maritime Organization, and right now that matters.

China effectively sets the baseline of what is politically possible. When it comes to decarbonisation or any other major tipping point in maritime, the plan that can pass muster is the plan China will accept.

Shipping tends to follow a herd mentality, particularly on investment trends where the smart money traditionally kept a close eye on the Greek power brokers who invariably found themselves calling the markets before anyone else.

The credo of the uncertain shipowner for centuries has been ‘follow the Greeks’, and there is certainly generational admiration in China for the old masters.

But stalk the halls of any major shipping conference these days, particularly in Asia where the real action is, and you will be told that the Greeks are the European version of the Chinese.

On the global political stage China’s growing power and its ambition to lead the global order are clear for everyone to see, and in shipping it is no different.

From insurance to shipbuilding and even the regulatory building blocks the industry is built on, China is securing the future of shipping on its own terms.

Richard Meade
Editor-in-chief, Lloyd’s List

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