Money from China? Then 'Made in China', shipowners told
Chinese banks have boosted loans to global shipowners – but sometimes insist that the vessels be built in China
Chinese banks have sharply increased loans to global shipowners as European lenders retreat from the market but some are driving a hard bargain: the finance often comes with the condition that vessels be built in China.
The financing has given China’s shipyards a lifeline after new orders dropped to a seven-year low last year. The government wants Chinese yards to move up the value chain by building higher-quality vessels and to become a player in the offshore energy equipment industry, a lucrative sector in the generally depressed shipbuilding market.
The role played by Chinese lenders has drawn the ire of some industry critics, who say an already oversupplied global fleet will only get bigger because shipowners are taking advantage of cheaper quotes from Chinese yards compared to other builders.
Chinese shipyards won new orders of 11.57 million deadweight tonnes in the first four months of the year, up 57 per cent from the same period last year, data from the China Association of the National Shipbuilding Industry showed.
A key supporter has been the Export-Import Bank of China, a policy bank that provides financing to advance government economic goals.
China Ex-Im is open to all clients who build vessels in China. In this tough time we want to do as much as we can to help (Chinese) shipyards get orders from shipping companies
“China Ex-Im is open to all clients who build vessels in China,” said Chen Bin, deputy general manager of the bank’s transport finance department.
