China: Output increases in shipbuilding sector

China's shipbuilding industry reported output valued at 424.8 billion yuan ($63.67 billion) in the first eight months of this year, up 23.4 percent year-on-year. However, the growth rate is 10.3 percent lower than the previous year , according to a report from the China Association of National Shipbuilding Industry.
Exports for the sector totaled 186.7 billion yuan ($27.98 billion), up 17.5 percent, 3.6 percent lower than that of the previous year.
Wang Guoqiang, a project manager with Shanghai Merchant Ship Design and Research Institute said the slowing growth rate is a result of the current economic gloom.
"With the world economy still struggling to get on its feet, international trade has also been affected, and cargo ships are the main means of transportation in international trade with their lower costs and larger capacity," Wang further explained.
Wang, for now, remains confident in the industry. China's sea transport has many advantages including lower labor costs that will serve to push the sector forward, he said. To date, Chi-na has made great progress in producing cargo ships, nudging European and other shipbuilding nations to focus on manufacturing high value-added ships, for example cruise ships.
"Chinese cargo ships have been exported to many places, among which Europe is a major destination," said Wang.