China State Shipbuilding Corporation (CSSC), the world’s largest shipbuilder, is expanding toward independently designing large cruise vessels, a domain that China has yet to dominate within the global shipbuilding industry.
CSSC reached a basic agreement with China Tourism Group in March whereby the two state-owned enterprises will collaborate to build two large cruise ships, both designed entirely in-house.
The first of the two vessels is due for delivery at the end of 2030. The construction of a third cruise ship is also under consideration.
CSSC has already built two cruise ships, the first being “Adora Magic City,” which began commercial operations in 2024. Basic construction work has been completed on the second, “Adora Flora City,” with commercial operations set to begin by the end of the year.
But while the two ships have been marketed as domestically produced, the underlying designs were based on expertise provided by Fincantieri, an Italian shipbuilding firm that partnered with CSSC during the previous decade.
Large cruise ships, which typically carry thousands of passengers, require higher levels of vibration control and soundproofing than cargo ships. Expanded fire safety equipment is also essential since there are multiple restaurants.
The numerous apertures, such as windows and balconies, necessitate structural designs that diverge from ships whose hulls are uninterrupted by openings.
Translating the design into the manufacturing process requires ingenuity. Unlike cargo ships, where the elimination of waste is a necessity, cruise ships demand lavish interiors. The scale of outfitting work, which involves installing wallpaper, lighting, windows, furniture and flooring, is enormous compared to other merchant ships.
“A passenger ship is like building a city that is a hub of entertainment,” said Toru Kitamura, senior advisor at the Planning and Design Center for Greener Ships (GSC), a Tokyo-based organization created by Japanese shipbuilders and marine shipping companies.
“It requires abilities for envisioning the ship’s concept, design know-how, managing material procurement and construction procedures, and coordinating the entire project,” Kitamura said.
When looking at all vessel types, China’s shipbuilding sector dominates the global industry. Last year, new orders in the country totaled 35.36 million compensated gross tons, according to the British firm Clarksons Research, accounting for 63% of the global total.
But cruise ships are one of the few exceptions. According to a December 2024 report by the Cruise Lines International Association, 97% of the world’s cruise ships were built in Europe.
China’s share of the construction of all passenger ships, including ferries, was only 17% in 2024, according to the United Nations Conference on Trade and Development. This lagged far behind the share for chemical tankers, which accounted for over 70%, and bulk carriers and container ships, each constituting around 60%.
China’s state-run news agency Xinhua describes large cruise vessels as one of three “crown jewels” of shipbuilding, together with liquefied natural gas transporters and aircraft carriers. China has already built domestically designed ships for the latter two categories.
In addition to design work, China also aims to ramp up the share of domestically produced content for cruise ships, in terms of major components and equipment.
Domestic components account for around 35% of Adora Flora City, based on procurement costs. The ratio will be raised to 50% for CSSC’s next cruise vessel, according to an interview with the company’s lead designer of large cruise ships, aired by CCTV.
Starting with the fourth domestically produced cruise vessel, the goal is to achieve a local content rate exceeding 80% by 2035.
But to boost the homegrown content of these ships, China will need to build a native procurement network. Large cruise ships have tens of millions of pieces of equipment and components.
“The supply chain for passenger ship equipment has been built primarily in Europe,” said Kitamura at GSC.
In China, where the economy continues to stagnate, encouraging consumer spending has become a key issue. In November last year, the Chinese government issued a document calling on local authorities to stimulate consumption by promoting the cruise industry.
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.