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Yard Talk | A bet on a nation’s fortune

Beijing will continue to support its state-owned yards with orders paid by state money. This will keep them afloat until the next shipbuilding boom, which will be driven by the maturity of the green fuel technologies. But this strategy will contain risks given that the future earnings and value of most of these newbuildings will arguably still rely on how well China can maintain its ‘world factory’ position and the corresponding appetite for commodity trade

The merger of China’s two largest state shipbuilding groups has gained the combined entity more weight in the eyes of Beijing’s policymakers, enabling it to win more support from state-owned shipowners and leasing houses amid the market downturn

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