China
Juliet Lu
April 2009
With the rapid growth of the economy, China's recreational marine market is forecast
to expand sharply in the coming years. In 2008, China imported over 50 million US
dollars worth of yachts and pleasure vessels, which was an increase of 72.6%
compared with 2007. (China Customs) Based on the confidence that pleasure boats
will become a part of life style in the country’s expanding wealthy and the middle-
class, provincial governments, property developers and boat builders are all
investing heavily in this industry. Business experts estimate that the market will pick
up speed in the next few years, and the overall market size will reach US$10billion
over the next decade, which presents significant opportunities for the exports of U.S.
pleasure boats, accessories, marina planning and construction materials.
Tariff Rate:
Compared with the import duty rate of luxury cars (MFN rate: 34.2%-37.6%), the tariff
for pleasure boat is relatively low with fewer trade barriers. According to the Protocol on
the Accession of the People’s Republic of China, the non-tariff measures of importing
boats and vessels was eliminated in 2004.
Original: Protocol on the Accession of the People’s Republic of China, WTO Agreement
(Annex 8: Schedule CLII - People’s Republic of China)
In 2008, China imported 1906 yachts and pleasure vessels with a value of 51 million US
dollars from 22 countries and regions. China exported over 220 million US dollars yacht
and pleasure vessels to 103 countries and regions in 2008, with increase of 39 percent
compared with the previous year. The main exporting market for China includes U.S.,
U.K., Hong Kong, Australia, Japan and E.U. The major boat exporters in China were
foreign-owned enterprises, which accounted for nearly 60 percent of the total export and
the main trade mode was export processing.
6000
5091.7718
5000
4000
2950.017
Value(10,000USD)
3000
1988 1906 Volume
2000 1192.6007
1070
1000
0
2006 2007 2008
2500000 2,209,502
2,163,693
2000000
1,589,264
1500000
1,057,426 Value(100USD)
500000
177,130
0
2006 2007 2008
The United States is one of the market leaders here with over 24% of the market share
in 2008. The import value from U.S. was over 12 million US dollars last year, which is
an increase of 55 percent compared with 2007. European companies aggressively
entered the Chinese market and their market share has been increased rapidly in the
last two years. Italy ranked the first in the sale value for the first time in 2008 although
the quantity is still quite low which mainly because of the strong sales of the most
luxury motor boats made in Italy , such as Azimut-Benetti, Ferretti and InRizzardi. U.K.
and France took the third and fifth place and the import value was 5.29 million US
dollars and 2.67million US dollars.
1.36 1.03
Italy
4.53 2.2 1.1
4.58 United States
5.24 United Kingdom
35.66
7.52 Hong Kong
France
10.38
Netherlands
24.01 Taiwan
Germany
Japan
Canada
1000
872
900
800
700
600 491
532
500
358
400 2008
300 223
2007
200
58 76107 60 83 85
100 22 16 26 25 50 22 6 0 25 23 7 7 5 10 0 16 21 36 48 2006
0
Yacht Manufacturing:
However, as an emerging industry, Chinese yacht builders still face a lot of challenges
and deficiencies including small manufacturing scale, lack of specialized engineers and
related equipment, weak management, unprofessional sales network, insufficiency of
laws and regulations.
Although there are presently only a handful of marinas in China, dozens more are
under construction or in planning. Many luxury residences in major cities incorporate
waterways and boating facilities in their developments.
The Shanghai municipal government is expected to announce plans for the city’s
yachting industry development over the next two decades. The success of
Shanghai's bid to host the 2010 World Expo will push the boat industry to develop
more rapidly. The Shanghai Government has decided to build marinas and cruising
shipping centers along the downtown river as part of the efforts to remake Shanghai
into a world-class city.
Other cities and areas that either have on-going marina projects, or are in the
planning process include Zhoushan, Qingdao ,Dalian, Ningbo, Beihai, Dongguan,
Shengzhen and Hainan Island.
The China (Shanghai) International Boat Show (CIBS) – the largest boat show in China
hosts its 14th edition this April in Shanghai, the exhibition covers over 30,000 m2 with
up to 380 exhibitors and over 100 boats on display in the downtown historical venue,
the Shanghai Exhibition Center. With a comprehensive display of China's boat industry
chain, CIBS offers several exhibition halls featuring thousands of products covering
equipment, technology, supplies and service.
On behalf of the U.S. Commercial Service we would like to welcome you to the China
(Shanghai) International Boat Show 2009. Our mission in Shanghai is to assist U.S.
firms doing business in China. We will staff an information booth in the Central Hall
(C073) to provide assistance to American companies and Chinese clients at the show.
We plan to make ourselves available to answers questions, offer advice and support
your networking activities throughout the event.
(86-21) 6279-7630
(86-21) 6279-7639
Email: Juliet.Lu@mail.doc.gov
http://www.buyusa.gov/china/en