The 21st century belongs to the Pacific, where maritime competition is intensifying. From a tripod structure to a two-power rivalry, the world shipbuilding industry will enter a cycle where China and South Korea take turns leading. In this competition, China and South Korea alternate in the top position, which signifies not only a struggle for maritime dominance but also a contest of manufacturing strength and international status. From China's "Great Wall" to South Korea's LNG carriers, each ship symbolizes the glory and power of its respective nation.
Is this true? Dear audience, welcome back to our channel! I am delighted to share and discuss today's topic with you: 1、In the face of new challenges and opportunities, we cannot help but ponder: What is the significance behind the world's leading shipbuilding industry? 2、How will China and South Korea respond to future development trends in the shipbuilding industry? 3、The competition in manufacturing has evolved into a contest of technology and innovation, so who will emerge victorious in this contest?
China and South Korea, two countries with deep roots in the shipbuilding industry, how do they take turns leading the world shipbuilding industry under the impetus of technology and innovation? The story behind this deserves our in-depth analysis.
In the first quarter of 2024, China's merchandise trade exceeded 10 trillion yuan, reaching a historic high. Among them, exports of electromechanical products amounted to 3.39 trillion yuan, an increase of 6.8%, accounting for 59.2% of the total exports. High-value-added products such as automobiles and ships performed well, especially with a 113.1% increase in ship exports. However, South Korea's shipbuilding industry had an order value of $13.6 billion during the same period, surpassing China's $12.6 billion, reclaiming the top spot in the world. Prior to this, since the fourth quarter of 2021, China's shipbuilding industry had been leading South Korea, but was surpassed by South Korea in the first quarter of 2024. Looking back, China's shipbuilding industry first surpassed South Korea in 2009, while South Korea's shipbuilding industry began in 1969, when Japan was the world's shipbuilding hegemon.
In 1967, the Third Arab-Israeli War broke out, the Suez Canal was closed, and the demand for giant oil tankers surged, leading to a booming global shipbuilding industry. South Korea enacted the "Shipbuilding Industry Promotion Act," with President Park Chung-hee as its advocate. He was confident, but his team was concerned about the lack of technical experience. Park claimed that group workers had participated in large-scale projects and shipbuilding was as easy as pie. However, faced with the challenge of building a 500,000-ton ship, they needed to construct a 900-meter dry dock and purchase machinery worth $80 million, but fundraising repeatedly failed. Park complained to Deputy Prime Minister Kim Hee-ryul, but was rebuffed. A few days later, the president called for a meeting. Park complained that seeking help from Japan and the United States had been futile and scorned. Mitsubishi Heavy Industries in Japan was only willing to build a 50,000-ton ship and refused to cooperate.
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