China State Shipbuilding Corporation
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China Is Winning The Tech Battle In The South China Sea
China’s deployments of technological assets to the South China Sea may be aiding its efforts to dominate one of the world’s most contested waterways. Other regional claimant states lack the capabilities to compete with China’s maritime technology, and the U.S. deploys its strategic assets on a non-permanent basis. China, on the other hand, has deployed radars, drones, and satellites to significantly boost its ability to monitor its “territorial waters” in the South China Sea. “China can use their technology or use defense to claim that we have strengthened our holding or our control, or administration or even our scientific research in the South China Sea,” Yun Sun, senior associate in the East Asia Program at the Stimson Center, told Voice of America. “In the long run it is one way that could matter,” she added. She stressed that while China’s extensive claims to the South China Sea were discredited by the Permanent Court of Arbitration in The Hague this past summer, “the Chinese can come up with a list of the equipment they deployed in the region and show that as evidence of sovereignty.” Chinese deployments also give China the ability to monitor regional activities in a way that other states cannot. China launched the Gaofen 3 satellite in August 2016 to “play an important role in monitoring the marine environment, islands and reefs, and ships and oil rigs,” the China Daily wrote, citing Xu Fuxiang, the project director. The satellite “will be very useful in safeguarding the country’s maritime rights and interests,” the report added. China revealed in September last year that it can now deploy domestically-produced drones to carry out “complicated surveillance” in the South China Sea and around the Senkaku/Diaoyu Islands in the East China Sea. “Reefs and islands are an important parts of our national territory. Precise information of their geology is crucial evidence for the demarcation of territorial waters and for safeguarding national maritime interests and security,” Li Yingcheng, general manager of China TopRS Technology Co. Ltd., an affiliate with the Chinese Academy of Surveying & Mapping, told the People’s Daily. The report called the drones “especially stealthy.” China is also working on a defensive wall beneath the waves. At a Chinese underwater robot exhibition in March 2016, China State Shipbuilding Corporation (CSSC), which builds a majority of China’s naval vessels, introduced plans for the construction of an “underwater Great Wall” for anti-submarine warfare purposes. The project will rely on seabed sensors and unmanned underwater vehicles like the U.S. naval drone recently seized by the Chinese navy in international waters. “We’re faced here with a very a non-uniform, uneven proliferation of new technologies in the South China Sea,” Collin Koh, a research fellow focusing on maritime security at Nanyang Technological University in Singapore, told VOA reporters. China’s military deployments often receive the most attention; however, the non-military strategic assets appear to also be impacting the situation in the South China Sea.
Broker's take: Defence could be the new investment theme for 2017: HSBC
by ANGELA TAN ASIA'S rising spending on defence is expected to become a more visible investment theme this year and possibly over the next decade, HSBC Global Research said on Friday. In a report on its equity strategy for Asia, HSBC experts noted that Asia's defence spending has been rising and is poised to continue. They cited SIPRI (the Stockholm International Peace Research Institute) which has estimated that Asia's total defence spending has increased 75 per cent over the past decade, significantly faster than the 1 per cent growth across the Americas and Europe's 7 per cent rise over the same period. According to SIPRI, Asia spent US$192 billion more in 2015 on military expenditure than in 2005. China's military budget, second only to the US, has risen at a compound annual growth rate (CAGR) of 14 per cent since 2006 and is seen expanding further. The same uptrend in spending is witnessed in India. "The defence industry has some relative attractions for investors. It is dominated by high barriers to entry (including high research and development spending and government relationships), few competitors (as countries try to reduce their reliance on foreign suppliers), relatively visible and secure revenue streams, and a continuous product development roadmap,'' HSBC said. Among the companies that are well placed to benefit from these developments include Shanghai-listed China Shipbuilding Industry Co Ltd and Hong Kong-listed CSSC Offshore & Marine Engineering (COMEC). The two are part of China Shipbuilding Industry Corporation (CSIC) and China State Shipbuilding Corporation (CSSC) - the two shipbuilding giants which dominate China's warship market. China Aviation Optical, aka JONHON, is also well placed to benefit as it is a leading defence integrated connection solution provider in China. Others include Haige Communication, China's leading provider of radio and satellite communications equipment and services; India's Larsen & Toubro as well as South Korea's Hanwha Techwin. Looking ahead at the container shipping sector, HSBC said the dynamics for the sector have started to change over the past 18 months, with a series of consolidations and several bankruptcies. "We now think the demand-supply situation can start to find a balance. This process could accelerate in 2017, allowing a balanced market by 2019-20,'' it said. In Asia, it prefers Hong Kong-listed SITC due to its focus on intra-Asia, which makes it relatively immune from weak inter-continental trade flows. India's HDFC Bank tops HSBC's Asia's best-in-class companies. HSBC said despite weak loan demand in India, HDFC Bank's retail loan growth remains high, at more than 20 per cent as of November 2016. This is led by auto and personal loans, which are 40 per cent of all retail loans. In addition, its CASA franchise remains solid and asset quality is excellent, with a gross non-performing loan ratio of 1 per cent. "Our analyst forecasts 20 per cent earnings CAGR over the next three years,'' HSBC concluded.
Fincantieri and CSSC Sign Deal for Joint Venture to Build Ships
Fincantieri and the China State Shipbuilding Corporation (CSSC), China’s largest shipbuilding conglomerate, have signed an agreement for the development of a joint venture aimed at developing and supporting the growth of the Chinese cruise industry, according to a statement. The signing took place today in Shanghai between the CEO of Fincantieri, Mr. Giuseppe Bono, the President of CSSC, Mr. Wu Qiang, and the Chairman of CSSC Cruise Technology Development and of the Shanghai Waigaoqiao Shipbuilding facility (SWS), Mr. Wang Qi. Attending the ceremony were Ambassador of Italy to the People's Republic of China Mr. Ettore Sequi, Consul General of Italy in Shanghai Mr. Stefano Beltrame, Chinese Vice Minister of Industry and Information Technology Mr. Xin Guobin, Vice Mayor of Shanghai Ms. Zhao Wen, for Carnival Corporation the Chief Operations Officer of Carnival Asia Mr. Michael Ungerer, and many authorities from the Chinese Government and the municipality of Shanghai. The today’s agreement, which follows the deal signed with CSSC and Carnival Corporation in November 2014, provides that "the joint venture will design and sell cruise ships exclusively intended and specifically customized for the Chinese and Asian market." These vessels will be built at one of CSSC’s shipyards, the SWS facility, on the basis of a platform licensed to the joint venture and to the SWS shipyard by Fincantieri. “This new agreement highlights once again Fincantieri’s technical and technological leading position and it places us at the center of a project without equal in the world, supported directly by Chinese Government in the form of a very ambitious project," commented Giuseppe Bono,CEO of Fincantieri. “We are equipped to face the new international scenarios and we are selected today as a shipbuilding partner for the development of the cruise sector of a country which looks at this industry with great determination. The presence of our main customer Carnival, which will purchase the vessels covered by the agreement, is also of fundamental importance for the project’s success. This result is a victory and an incentive to work even harder in the future. It confirms the Group’s ability to be the first one to seize highly strategic opportunities and a worldwide leader in all the sectors in which it operates”. Bono concluded: “Finally, it is worth recalling that our Italian shipyards have work guaranteed on average for the next ten years and that the agreement may lead to additional benefits related to top level ship components and engineering”. Wu Qiang, President of CSSC, commented: “Signing the cruise shipbuilding joint venture agreement with Fincantieri, one of the world’s largest shipbuilding groups, is another milestone event for CSSC, for the history and development of China’s cruise industry, as well as for the cooperation between China’s and Italy’s shipbuilding industry. Joining forces will give new vitality to the rapid growth of China’s and the Asian-pacific cruise market. We look forward to working together with Fincantieri, Carnival, CIC (China Investment Corporation) and other strategic partners to strive for building and delivering China's first domestic large cruise ship”.
Knowledge Graph
Examples
1 China State Shipbuilding Corporation (CSSC) has announced that its subsidiary yards Shanghai Waigaoqiao Shipbuilding and CSSC Chengxi Shipyard have been involved in two shipbuilding disputes with two shipowners.
2 According to state-run China State Shipbuilding Corporation, Luxemburg-based owner CLdN Bulk refused to take delivery of a 180,000 dwt capesize built by Waigaoqiao Shipbuilding in March and requested a refund, as the company believed that the vessel’s navigation speed didn’t meet the right standard.
3 Norwegian owner Torvald Klaveness Shipping has requested compensation from China State Shipbuilding Corporation Chengxi Shipyard for a torsional vibration damper defect of a 71,900 dwt bulker delivered by the shipyard in 2013.