China's Ministry of Industry and IT has announced that China's shipyards will nearly double their shipbuilding capacity from now until 2011 (from 28.8 m deadweight tons to 50 m).
And they don't mind spending government money:
"The government will extend credit support to shipyards that were hit hard by plunging orders and will offer loans to foreign companies buying China-built ships and vessels, the plan said."
(Not to mention that most big shipyards are government-owned SoEs anyway, i.e. their profits and losses belong to the government.)
New orders in Jan-April 2009 are down 95 % compared to 2008, but so what: Expanding capacity is always more fun than downsizing!
Right into the dollar zone
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