Chinese Money

China has many intrinsic reasons for supporting the shipyards – either by offering direct loans to the yards or to their clients. The labour intensive shipbuilding industry uses steel from Chinese steel mills, which is another important source of employment for many people. Since its establishment in 1994, China Exim Bank has played an instrumental role in supporting China’s maritime industry, having granted shipping/shipbuilding related loans of over RMB 116.8 billion (USD 17.1 billion) in the domestic currency and USD 8.5 billion in greenback at the end of 2009. The bank has supported the financing of 3,722 China built vessels of an aggregate tonnage of 120 million dwt and moving forward, China Exim Bank will continue to assist shipyards in stablising their orderbooks and secure new orders through the provisions of seller’s credit and buyer’s credit, payment guarantees and advance payment refund guarantees.

This year, the policy bank will be focusing its attention on providing financial support to promote mergers and acquisitions among the shipbuilders, encourage them to move into higher end ships such as LNG and offshore construction vessels and invest in new shipbuilding technologies. These initiatives are very much in line with the policy guidelines stipulated by the Chinese State Council last year.

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