China-Japan Ties: Shipbuilding companies seek profits through collaboration

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In recent years, the ship-building industry in China has grown rapidly, making inroads with its rival in Japan. Now the two countries are seeking to collaborate. Companies from both sides are looking at establishing more joint ventures. CGTN's Zheng Yibing has more.

A new ship-building joint venture is about to start operations in eastern China's Jiangsu Province. Who's behind the project? Chinese and Japanese companies. Their aim is to achieve maximum production efficiency together.

KOJI TAMURA EXECUTIVE OFFICER, MITSUI E&S "Chinese shipbuilders are low cost and highly efficient, while Japanese have strength in technology and management."

KENICHI ONO HEAD OF MITSUI (SHANGHAI) MOBILITY DIVISION "Despite huge progress, Chinese companies are still humble and have a strong will to acquire new technologies."

And it's a good timing for a change.

ZHENG YIBING TAICANG, JIANGSU PROVINCE "As the ship-building industry seeks to upgrade its production and sales, companies from both countries are joining hands to work together."

All of this comes after China lifted restrictions on foreign investment in the industry just a year ago, including ship construction, repair and design. And now, the first deal is about to go into effect.

China's largest private shipbuilder Yangzijiang is one of the companies involved.

SONG SHUMING VICE GENERAL MANAGER, YANGZIJIANG SHIPBUILDING GROUP "We need to improve our inner management and need to learn from them, and are expecting to do it well."

REN YUANLIN CHAIRMAN, YANGZIJIANG SHIPBUILDING GROUP "We see China's further opening-up and easing of the foreign investment restriction, and we want to be the first to try this in the shipbuilding industry. We are looking forward to the cooperation."

In addition to bulk carriers and tankers, the joint venture with Japan also includes building small ships for transporting liquefied natural gas or LNG. It will start operations this August and help both sides share in the benefits of the global shipping industry. Zheng Yibing, CGTN, in Jiangsu Province.