Challenges and solutions for ship recycling in China

The world ship recycling centre has shifted from developed countries to developing countries in Asia. However, Chinese ship recycling companies are experiencing a recession in the ship recycling market and intense price competition from South Asian countries. In this study, Chinese economic environment is analysed, including depressed recycled steel market and price, non-preferential tax policy and high investment cost of ship recycling yards. This paper presents Chinese major laws and regulations related to the ship recycling industry for environmental protection and the workers' health and safety. From the comparison between Chinese laws and international conventions, we find that no specific enforcing mechanism exists in the Chinese ship recycling industry. However, Chinese large-scale ship recycling yards have been taking advanced practices including site environmental protection, dismantling procedures and technologies, and safety management. Arising from this study, several strategies and solutions for Chinese ship recycling facilities are recommended.