The shipbuilding industry became one of the most "worry" industries in 2012
June 28 03:33:48, 2025
In 2012, the real economy of China faced significant challenges, as highlighted in the "2012 China Real Economy Development Report" jointly released by *China Economic Weekly* and the Ministry of Commerce Credit Rating and Certification Center. The report revealed that the performance of the real economy was affected by declining infrastructure and real estate investments, leading to a slowdown in key industries such as steel, non-ferrous metals, construction materials, and chemicals. These sectors experienced sluggish growth, with overcapacity becoming a major issue. Some industries were even on the brink of widespread losses.
Throughout the year, the economic environment remained challenging. According to data from the National Bureau of Statistics, industrial output for enterprises above designated size grew by 10.0% year-on-year through November 2012, slightly lower than the previous year’s 13.9%. Light industry and heavy industry saw their growth rates drop by 2.8 and 4.6 percentage points, respectively. Profitability also declined, with total profits for large-scale industrial enterprises reaching 420 billion yuan from January to October, up just 0.5% year-on-year. The profit margin fell to 5.46%, down from 6.04% in the same period the previous year.
Several key industries struggled during this time. The steel, construction materials, photovoltaic, wind power, shipbuilding, textile, and electronics sectors all faced operational difficulties. Some industries were on the verge of overall losses, while others saw sharp declines in production and export volumes. For example, the textile industry suffered due to weak international demand, domestic market slowdowns, and price disparities between domestic and foreign cotton. Similarly, the household appliance sector saw slowed growth due to falling demand and outdated product cycles.
The shipbuilding industry also faced a tough year. From January to September, the country's shipbuilding completion volume dropped by 18.5% year-on-year, and new orders fell by 46.9%. This was largely due to the continued weakness in the global shipping market. Meanwhile, the steel industry endured its worst year since the 21st century, with falling prices, high costs, and reduced profits. Steel companies reported a net loss after accounting for investment income.
The rare earth industry also struggled, as weak demand and restructuring efforts led to falling prices and reduced profitability. In the cement industry, overcapacity and falling prices caused a sharp decline in profits. Meanwhile, emerging sectors like photovoltaics and wind power faced overcapacity concerns, especially after the European debt crisis hit demand and trade barriers were imposed by the U.S.
The electronics industry, heavily reliant on international markets, saw slower export growth. From January to September, revenue increased by 8.8%, but profits fell by 6.5%, with nearly 4,000 companies reporting losses. Looking ahead, the recovery of European and American markets remained uncertain, which could further pressure China’s exports.
Overall, 2012 marked a difficult year for China’s real economy, with multiple industries facing declining demand, overcapacity, and rising operational pressures. The combination of domestic and global economic challenges created a complex and challenging environment for businesses across the board.