China to limit foreign investment in shipyards

China plans to cap foreign holdings in the country’s ship makers at 49 percent as the government moves to both maintain control over the fledgling industry and tap overseas know how.

Foreign shipbuilders seeking to form joint ventures in China must also transfer their expertise to local partners through the establishment of technology centers, the Commission of Science Technology & Industry for National Defense said in a website notice over the weekend.

“As international competition heats up, China’s ship making industry faces challenges such as a weakness in technology innovation,” said the agency’s Zhang Xiangmu.