![CSSC_(8028489010)](https://upload.wikimedia.org/wikipedia/commons/e/ef/CSSC_%288028489010%29.jpg)
The China State Shipbuilding Corporation (CSSC) is a Chinese
shipbuilding
Shipbuilding is the construction of ships and other floating vessels. It normally takes place in a specialized facility known as a shipyard. Shipbuilders, also called shipwrights, follow a specialized occupation that traces its roots to befor ...
conglomerate.
Description
CSSC is one of the top 10
defence groups in China. It consists of various shipyards, equipment manufacturers, research institutes and shipbuilding-related companies that build both civilian and military ships. It owns some of the most well known shipbuilders in China, such as
Dalian Shipbuilding Industry Company
Dalian Shipbuilding Industry Company (DSIC), located in Dalian, Liaoning province, China. It is part of China Shipbuilding Industry Corporation (CSIC), which has since been merged into China State Shipbuilding Corporation to form China's lar ...
,
Jiangnan Shipyard
Jiangnan Shipyard () is a historic shipyard in Shanghai, China. The shipyard has been state-owned since its founding in 1865 and is now operated as Jiangnan Shipyard (Group) Co. Ltd.
Before 2009, the company was south of central Shanghai at ...
,
Hudong–Zhonghua Shipbuilding
Hudong–Zhonghua Shipbuilding is a subsidiary of China State Shipbuilding Corporation (CSSC). It produces civilian and military ships. Hudong–Zhonghua claims to be the "Cradle of Chinese Frigates and Landing Ships" for its work for the People ...
, Guangzhou Huangpu Shipbuilding and Guangzhou Wenchong Shipyard. Its
subsidiary
A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company or having a s ...
,
China CSSC Holdings Limited
The China State Shipbuilding Corporation (CSSC) is a Chinese shipbuilding conglomerate.
Description
CSSC is one of the top 10 defence groups in China. It consists of various shipyards, equipment manufacturers, research institutes and shipbu ...
(), is listed on the
Shanghai Stock Exchange
The Shanghai Stock Exchange (SSE) is a stock exchange based in the city of Shanghai, China. It is one of the three stock exchanges operating independently in mainland China, the others being the Beijing Stock Exchange and the Shenzhen Stock Exc ...
, and in turn owns other subsidiaries including
Shanghai Waigaoqiao Shipbuilding
The China State Shipbuilding Corporation (CSSC) is a Chinese shipbuilding conglomerate.
Description
CSSC is one of the top 10 defence groups in China. It consists of various shipyards, equipment manufacturers, research institutes and shipbu ...
.
History
Early developments
In 1964, the
Sixth Ministry of Machine Building Sixth Ministry of Machine-Building of the PRC (中华人民共和国第六机械工业部), one of the central offices in the People's Republic of China, created on Sept. 2, 1963, who oversaw the shipbuilding industry.
After Cultural Revolution the ...
was created
[Collins and Grubb, pg. 6] to oversee China's shipbuilding enterprises, which were predominantly engaged in military work.
[Medeiros et al., pg. 113] In July 1982,
[Collins and Grubb, pg. 7] as part of defence industry reforms and "
defence conversions", the ministry was converted into the China State Shipbuilding Corporation.
CSSC remained under state control but was permitted to operate with "a degree of market-based economic autonomy".
[Collins and Grubb, pg. 5] CSSC shifted the industry's focus to commercial work; by 1992, 80% of output was to the civilian sector,
and in 1993 half of the commercial output was for export.
[Collins and Grubb, pg. 8]
Spinning off CSIC
In the late 1990s, economic reforms broke up state-owned monopolies and introduced "a limited amount of free-market competition" to improve the efficiency of defence industries.
[Collins and Grubb, pg. 9-10][Medeiros et al., pg. 114] In July 1999, the
China Shipbuilding Industry Corporation
The China Shipbuilding Industry Corporation (CSIC) was one of the two largest shipbuilding conglomerates in China, the other was the China State Shipbuilding Corporation (CSSC). It was formed by the Government of the People's Republic of Chin ...
(CSIC) was spun off from CSSC.
The shipbuilding industry was divided roughly along geographical lines: CSSC retained assets in the east and south,
[Medeiros et al., pg. 117] and CSIC gained control in the northeast and inland.
[Medeiros et al., pg. 120] Both reported to the
State-owned Assets Supervision and Administration Commission
The State-owned Assets Supervision and Administration Commission of the State Council (SASAC) is a special commission of the People's Republic of China, directly under the State Council. It was founded in 2003 through the consolidation of variou ...
(SASAC).
CSSC emerged as the smaller entity.
[Medeiros et al., pg. 121] Enterprises not affiliated with either conglomerate included shipyards owned by the
People's Liberation Army
The People's Liberation Army (PLA) is the principal military force of the People's Republic of China and the armed wing of the Chinese Communist Party (CCP). The PLA consists of five service branches: the Ground Force, Navy, Air Force, ...
(PLA), provinces, municipalities, foreign joint ventures, and Chinese shipping companies.
[Collins and Grubb, pg. 9][Medeiros et al., pg. 115-116]
Merging with CSIC
Preparations for merging CSIC and CSSC date back to at least 2010, when
Hu Wenming
Hu Wenming (; born May 1957) is a retired Chinese business executive who served as chairman of China State Shipbuilding Corporation between 2012 and 2019. In May 2020, he has been placed under investigation as Chinese Communist Party general sec ...
became CSSC's party secretary, in anticipation of an industry decline.
Hu was a strong supporter of the merger; he was CSSC chairman from 2012 to 2015, and then CSIC chairman from March 2015 until his retirement in August 2019 because of corruption.
The decision to merge the conglomerates may have influenced not only by a slowing economy,
but also the discovery of widespread corruption in CSIC and Hu's involvement in it.
The CSIC and CSSC merger was approved by SASAC in October 2019, and occurred in November 2019; the combined entity took the CSSC name. The reorganization was complete by September 2020. The new entity was the world's largest shipbuilder with 20% global market share and billion in assets.
U.S. sanctions
In November 2020,
American
American(s) may refer to:
* American, something of, from, or related to the United States of America, commonly known as the "United States" or "America"
** Americans, citizens and nationals of the United States of America
** American ancestry, pe ...
entities were prohibited by
U.S. Presidential Executive Order
In the United States, an executive order is a directive by the president of the United States that manages operations of the federal government. The legal or constitutional basis for executive orders has multiple sources. Article Two of th ...
13959 from owning shares in companies—including CSSC—linked to the PLA by the
United States Department of Defense
The United States Department of Defense (DoD, USDOD or DOD) is an executive branch department of the federal government charged with coordinating and supervising all agencies and functions of the government directly related to national secu ...
.
See also
*
Hu Chuanzhi
Hu Chuanzhi (; December 1929 – 29 September 2018) was a Chinese shipbuilding executive and politician. He served as CEO of the China State Shipbuilding Corporation, the state-owned shipbuilding conglomerate, and as Vice Chairman of the Shanghai ...
, former CEO of the CSSC
*
List of largest shipyards
References
Citations
Sources
*
*
External links
China State Shipbuilding Corporation (CSSC)China CSSC Holdings Limited
{{authority control
Vehicle manufacturing companies established in 1999
Government-owned companies of China
Shipbuilding companies of China
Chinese brands
Defence companies of the People's Republic of China
Chinese companies established in 1999