Recently, Mr.Ren Yuanlin, Executive Chairman of Yangzijiang Shipbuilding said in an interview with CCTV, “80% orders in shipbuilding industry are captured by 20% shipyards so far, which indicates that the shipbuilding industry has entered into ‘the warring states period’, where industry concentration has become more and more centralized, and allocation of resources is more reasonable, and substantial benefit from the structure adjustment in the shipbuilding industry is very clear.”

In fact, Yangzijiang shipbuilding is exactly a successful case of the industrial structure adjustment. In the first half of 2014, the effective orders booked in Yangzijiang amounts to $1.4 billion for 32 vessels, ranking the first among all Chinese shipyards. Yangzijiang has recorded the strongest quarterly earnings of RMB 1.24 billion based on the shipbuilder’s latest results.

In last decade, the gross of shipbuilding in China has gradually increased and now the entire shipbuilding industry is under transformation and upgrading from large to strong. Years of development tells Chinese shipbuilders that only by adhering to independent innovation and creating their own brand can they get rid of the identity of “follower” and become "peer" or even "leader". Now, Yangzijiang’s 10000TEU container vessel, Rongsheng’s VLOC, Hudong-zhonghua’s LNG ship, Jiangnan Shipyard’s LPG ship, Waigaoqiao Shipbuilding’s itself-elevating platform, Mingde Heavy Industry’s chemical tanker and SINOPACIFIC’s OSV and so on, have gradually formed their own unique products, which become trump card in market competition.

In recent years, domestic ship enterprises are speeding up the process of merger and reorganization. After acquiring the whole Changbo shipyard and recombining with Taizhou Sanfu Ship Engineering co., LTD., Jiangsu New Yangzijiang shipbuilding co., LTD.,has gained an edge in ULCS. China merchants heavy industry (Jiangsu) co., LTD., took over the whole Jiangsu Haixin shipping co., LTD., and accelerated the transformation to marine engineering equipment, has clinched to $1.84 billion contract. As Chen Qiang, Rongsheng’s president said, “Merger and reorganization is the development path for Chinese ship industry."

As the bankruptcy, mergers and reorganization in the private shipping enterprises aggravate the industry differentiation, the shipbuilding industry concentration in China has been obviously enhanced. Principal researcher Martin Stopford from Clarkson said that from 2009 to the end of 2013, more than 500 yards in the global have been eliminated, however, so far, the shipbuilding overcapacity problem is still serious, which suggests that the pace of structure adjustment is set to speed up. Meanwhile, polarization phenomenon of “the strong get stronger and the weak get weaker” in the shipbuilding industry is still continuing.