China set to launch world’s largest shipbuilder in $16 billion mega-merger

China is poised to complete a landmark $16 billion merger this week between two of its largest state-owned shipbuilding giants, China State Shipbuilding Corporation (CSSC) and China Shipbuilding Industry Corporation.

The consolidation, will result in the creation of the world’s largest shipbuilding company—marking a strategic milestone in Beijing’s ambition to dominate global maritime manufacturing, Caliber.Az reports, citing foreign media.

The newly merged entity will command approximately 17% of the global shipbuilding market and boast a combined annual revenue of around $18 billion. Its extensive order book includes more than 530 vessels, with a total deadweight exceeding 54 million tons—by far the largest in the industry worldwide.

While both companies were originally part of a single enterprise, they were separated in 1999 by a directive from the Chinese government intended to promote internal competition. Now, amid shifting industrial priorities and growing geopolitical tensions, Beijing is reversing course, seeking greater efficiency and global competitiveness through consolidation—particularly in strategic sectors with military relevance.

Though both firms operate predominantly within the commercial shipping sector, they also hold significant military contracts. CSSC is a key supplier to the Chinese Navy, while China Shipbuilding Industry Corporation was responsible for designing and constructing China’s first domestically-built aircraft carrier, the Shandong.

According to maritime analysts, the merger marks a major leap forward in China’s long-standing efforts to cement its dominance in global shipbuilding—a sector that is increasingly seen as both economically vital and geopolitically strategic. In 2024, Chinese shipyards are expected to produce 55% of the world's total tonnage, dwarfing the output of the United States, which accounts for just 0.05%. In sheer capacity, China’s shipbuilding industry is now estimated to be 232 times larger than that of the US.

The merger is also seen as a tactical response to escalating trade restrictions. US President Donald Trump’s administration imposed tariffs on vessels constructed in or owned by Chinese firms—a policy that has since remained under scrutiny. The consolidated shipbuilding giant is expected to better withstand foreign economic pressure, streamline domestic production, and enhance China’s position in both commercial and naval shipbuilding sectors.

By Vafa Guliyeva