Cautious optimism is growing that Korean shipbuilders will be able to increase their overall share in the global market, as the sector has become the latest battleground in the ongoing U.S.-China strategic rivalry, according to industry officials, Sunday.After the Joe Biden administration responded positively on March 12 (local time) to a petition from a group of five U.S. unions asking for a review of China’s subsidies for shipbuilders, Korea’s five largest shipbuilding stocks rose sharply despite a slight drop of the benchmark KOSPI.In particular, Samsung Heavy Industries’ stock price soared 13 percent during Thursday’s trading session. Hanwha Ocean’s stock also rose 11 percent that day.The stock price of HD Korea Shipbuilding & Offshore Engineering (KSOE), an HD Hyundai subsidiary supervising its shipyards, went up 5 percent, while HD Hyundai Heavy Industries and Hyundai Mipo Dockyard, both of which are HD KSOE’s listed shipbuilding units, saw 8 percent and 4 percent increases in their stock prices, respectively.Exchange-traded funds owning major Korean shipbuilding stocks were also among the most profitable domestic funds last week.
“As the petition was filed ahead of the U.S. presidential election, the U.S. government is highly likely to accept the request for an investigation,” NH Investment & Securities analyst Jung Yeon-seung said. “Although it will take time for the U.S. government to come up with measures, this issue will be mentioned repeatedly during the presidential election campaign.”Biden promised that the U.S. Trade Representative (USTR) would take a hard look at the petition in accordance with the law.“We’ll always stand against China’s unfair practices — and as long as I am president, I’ll fight for U.S. workers and jobs,” the U.S. president wrote on social media.USTR Ambassador Katherine Tai also said she looks forward to reviewing the petition in detail, although the Chinese commerce ministry denounced it as “trade protectionism” and “lacking factual basis.” The petitioners claimed that China’s drive to dominate the global shipbuilding, maritime and logistics sector is built on non-market policies that are far more aggressive and interventionist than any other country.“Multiple reports have pointed out that the decline of the U.S. shipbuilding industry is due mainly to overprotection while the development of the Chinese shipbuilding industry has benefited from increasing technological innovation and high-end, intelligent and green development,” said He Yadong, the spokesperson of the Chinese commerce ministry.
The NH Investment analyst noted that the U.S. government’s sanctions on Chinese shipbuilders will deteriorate their price competitiveness and raise the value of building slots at Korean shipyards.“Korean shipbuilders will be able to increase their shares in the gas carrier market in the long run, due to the growing transportation of liquefied natural gas and liquefied petroleum gas to the U.S.,” the analyst said.The U.S. government is also expected to boost ties with Korean shipbuilders in the naval ship sector.HD Hyundai Vice Chairman Chung Ki-sun and Hanwha Group Vice Chairman Kim Dong-kwan, both of whom met U.S. Secretary of the Navy Carlos Del Toro during his visit to Korea last month, are reportedly preparing for trips to the U.S. next month, as they accepted the secretary’s invitation to his office in the Pentagon to continue discussions on how to provide maintenance, repair and overhaul services 카지노사이트 to the U.S. Navy.
