The international financial crisis has a great impact on China's shipping industry. What deep-seated problems have been reflected by the financial crisis? What significance does the shipbuilding industry that The State Council promulgates new revitalize plan have to the industry? During the two sessions, our reporter interviewed Jin Donghan, a member of the CPPCC National Committee and director and chief engineer of the 711 Research Institute of China Shipbuilding Industry Corporation.

The crisis is good for the industry's long-term development

Modern Logistics: what is the impact of the current financial crisis on the shipping industry? How to view this impact?

Jin Donghan: As an export-oriented economy, the shipping industry has been greatly affected by the financial crisis. For example, China and South Korea have faced the crisis of withdrawing orders. Some orders were made for ships but were later abandoned. Shipping industry there is a supporting, is the inside of some equipment. Because shipbuilding is not only about making shells, but also about putting in a lot of equipment, which also faces a lot of problems. Some time ago, the development of China's shipping industry appeared disorderly, because the profit of this industry is relatively high, many private enterprises have invested in this industry, resulting in excess shipbuilding capacity, this problem has been bubbled up. The economic crisis is not necessarily a bad thing for China. It is good for the industry to grow faster in the long run.

Modern Logistics news: for the shipping industry, what is the outstanding contradiction at present?

Jin Donghan: The primary problem for the shipping industry is capacity. According to incomplete statistics, China's capacity has reached 60 million tons. In recent years, the world's demand for shipbuilding is particularly large, which is just over 100 million tons, or 60 million to 80 million tons in a normal year. China's production capacity is about the same as the world's demand. As for the shipbuilding industry itself, there is actually some excess capacity. Private companies like those in Zhejiang are building ships everywhere. In this crisis, private enterprises will be eliminated first, and the proportion will definitely be over 50%. In the past, private enterprises did not understand the law of industrial development, so they blindly invested in this thing to make money.

Modern Logistics: China has such a large production capacity, can we also follow in terms of technology? Jin donghan: Lagging behind in technological innovation is the second problem for China's shipping industry. The ship that our big enterprise makes now is quite high grade, the ship that domestic private enterprise makes is still very common ship. China's backbone shipyards can manufacture all three main ship types, such as bulk carriers, VLCC (very large 300,000-ton tanker), large container ships, and some engineering ships for offshore platforms. But more upscale, like luxury cruise ships, and LNG. LNG carriers have recently begun to be built, but the technology is not yet ours. Therefore, the research and development of new products is a very serious problem facing China's shipbuilding industry. Shipbuilding Industry should Speed up supporting Supply development Modern Logistics Newspaper: At present, all industries are competing in the industry chain, for China's shipbuilding industry, what extent can the current industry chain achieve? Jin Donghan: Our current matching rate does not match the development of the shipbuilding industry. The shipbuilding industry is developing rapidly. For example, in 2007, our shipbuilding accounted for more than 22% of the world's total shipbuilding, and in 2008, it reached more than 28%. It is already number two in the world. In two or three years, I expect China to be number one in shipbuilding. Despite the rapid development, less than 50% of the equipment is our own production. Among the less than 50% of the equipment, about 40% of the parts are imported from abroad, so the localization rate of our equipment is very low, and the value of this equipment is relatively high. The main problems here include, one is that the equipment we do can not meet the technical requirements. We are now introducing foreign brands and producing at home. Second, no industrial chain has been formed. For example, the final assembly plant is able to go up, but cannot buy parts. There is no one to make spare parts, the shipbuilding industry is a whole industry chain, because there are too many equipment, all kinds of equipment are needed. The third is that we don't have a global service system. The equipment on the ship travels all over the world. If the equipment breaks down in Hamburg, you have to fix it in Hamburg. We do not have a global service network. Only when we have service points in all ports around the world, customers will buy our equipment. Because I can guarantee that the customer can fix any problem anywhere. Otherwise, the customer will not be able to maintain the ship in a place, and the loss will be great. It can be said that whether China's shipbuilding equipment can develop is a very important issue. This is an issue that both China State Shipbuilding Corporation and China Shipbuilding Industry Corporation are studying and have begun to set up points at some major ports.

Modern Logistics news: We don't have a brand for the parts you mentioned, so the technical content can't meet the requirements. Can we meet the requirements for steel for hull?

Kim dong-han: This can be achieved. Now the establishment of the factory does not mean that EVERYTHING I produce is not small and complete, they are very professional. Basically I build the case, then I build a few parts, and then I assemble, test, and deliver. This button, for example, and the display screen, are made by professional manufacturers. Now our complete machine factory can, but no one in the professional factory produces this, a lot of things have to import. Processing products do not support mainly because the original amount is very small, domestic enterprises do not make money, and high requirements, enterprises are not interested in doing. Now the demand is big, domestic enterprises are also interested in doing, do also need a process, can not be done immediately. For example, in the engine industry, the requirement is to be top class. In fact, China's engine industry is backward. All kinds of engines, be they aircraft, shipbuilding or automobile engines, are backward and cannot be compared with those of foreign countries. China's shipbuilding industry should form an industrial chain and develop cooperatively. If you're too strong in one place and you can't keep up in another, then you're not growing healthily.