China State Shipbuilding Corporation

Overview

native name	中国船舶集团有限公司
type	State-owned enterprise
industry	Shipbuilding, defense
founded	May 4, 1982
location city	Huangpu District, Shanghai
location country	China
area served	Worldwide
key people	Zhang Yingdai (Chairman)
revenue	US$ 48.9 billion (2023)‡R1R‡
net income	US$ 2.4 billion (2023)‡R1R‡
assets	US$ 143.7 billion (2023)‡R1R‡
num employees	196,309 (2023)‡R1R‡

The China State Shipbuilding Corporation (CSSC) is a state-owned shipbuilding conglomerate of the People's Republic of China (PRC).

Background

CSSC is one of the top 10 defence groups in the PRC.[2] It consists of various shipyards, equipment manufacturers, research institutes and shipbuilding-related companies that build both civilian and military ships. It owns some of the most well known shipbuilders in China, such as Dalian Shipbuilding Industry Company, Jiangnan Shipyard, Hudong–Zhonghua Shipbuilding, Guangzhou Huangpu Shipbuilding[3] and Guangzhou Wenchong Shipyard.[4] Its subsidiary

History

Early developments

In 1964, the Sixth Ministry of Machine Building was created[8] to oversee China's shipbuilding enterprises, which were predominantly engaged in military work.[9] In July 1982,[10] as part of defence industry reforms and "defence conversions", the ministry was converted into the China State Shipbuilding Corporation.[9] CSSC remained under state control but was permitted to operate with "a degree of market-based economic autonomy".[11] CSSC shifted the industry's focus to commercial work; by 1992, 80% of output was to the civilian sector,[10] and in 1993, half of the commercial output was for export.[12]

Spinning off CSIC

In the late 1990s, economic reforms broke up state-owned monopolies and introduced "a limited amount of free-market competition" to improve the efficiency of defence industries.[13][14] In July 1999, the China Shipbuilding Industry Corporation (CSIC) was spun off from CSSC.[14] The shipbuilding industry was divided roughly along geographical lines: CSSC retained assets in the east and south,[15] and CSIC gained control in the northeast and inland.[16] Both reported to the State-owned Assets Supervision and Administration Commission (SASAC). CSSC emerged as the smaller entity.[15]

Merging with CSIC

Preparations for merging CSIC and CSSC date back to at least 2010, when Hu Wenming became CSSC's party secretary, in anticipation of an industry decline.[20] Hu was a strong supporter of the merger; he was CSSC chairman from 2012 to 2015, and then CSIC chairman from March 2015 until his retirement in August 2019 because of corruption.[21] The decision to merge the conglomerates may have influenced not only by a slowing economy,[22] but also the discovery of widespread corruption in CSIC and Hu's involvement in it.[21][22][23]

The CSIC and CSSC merger was approved by SASAC in October 2019,

U.S. sanctions

In November 2020, American entities were prohibited by U.S. Presidential Executive Order 13959 from owning shares in companies—including CSSC—linked to the PLA by the United States Department of Defense.[28][29][30]

China State Shipbuilding Corporation

Background

History

Early developments

Spinning off CSIC

Merging with CSIC

U.S. sanctions

See also

External links

References