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The China State Shipbuilding Corporation (CSSC) is a Chinese
shipbuilding Shipbuilding is the construction of ships and other Watercraft, 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 roo ...
conglomerate Conglomerate or conglomeration may refer to: * Conglomerate (company) * Conglomerate (geology) * Conglomerate (mathematics) In popular culture: * The Conglomerate (American group), a production crew and musical group founded by Busta Rhymes ** Co ...
.


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, Jiangnan Shipyard, Hudong–Zhonghua Shipbuilding, Guangzhou Huangpu Shipbuilding and Guangzhou Wenchong Shipyard. Its subsidiary, China CSSC Holdings Limited (), 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 Excha ...
, and in turn owns other subsidiaries including Shanghai Waigaoqiao Shipbuilding.


History


Early developments

In 1964, the Sixth Ministry of Machine Building was createdCollins 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. 9-10Medeiros 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 Chi ...
(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. 9Medeiros 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 se ...
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 entities were prohibited by
U.S. Presidential The president of the United States (POTUS) is the head of state and head of government of the United States of America. The president directs the executive branch of the federal government and is the commander-in-chief of the United St ...
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 ...
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 secur ...
.


See also

* Hu Chuanzhi, former CEO of the CSSC *
List of largest shipyards This is a list of notable shipbuilders and shipyards: Africa Egypt * Suez shipyard * Alexandria Shipyard Asia Azerbaijan * Baku Shipyard Bangladesh *FMC Dockyard Limited * Ananda Shipyard and Shipways * Bashundhara Group, Bashundhara Steel & E ...


References


Citations


Sources

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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