Chinese state aid to shipyards has come under fire in Germany for "distorting" the market.
Speaking at its annual meeting, German Shipbuilding and Ocean Industries Association (VSM) general manager Reinhard Luken said Asian competitors are aiming to penetrate the high-tech shipbuilding market.
"It is a sign of realism that the discussion has shifted from focusing only on the opportunities offered by China to viewing China also as a rival system," he added.
"New ferries for the Baltic Sea are currently ordered mostly from China where yards offer discount prices thanks to generous government support.
"For decades we have been seeing these kinds of market distortions without being able to devise any form of discipline. This has to change if we want sustainable, healthy markets"
VSM also said recent trends in shipbuilding have continued in the last 12 months, with Asia dominating orders for standard vessels.
"As the pressure on the industry continues, many governments feel prompted to intervene in the market and resort to subsidies and protectionist measures to shield their domestic industries," it said.
But in Germany, in seven of the past eight years more orders were acquired than delivered. Since 2010 the orderbook has nearly doubled, VSM said.
As a consequence, German shipyards have expanded their workforce.
For 2018, the German Federal Office of Statistics recorded an 8% increase in the number of employees.
"The strong orderbook offers shipyards a solid planning basis to further improve productivity and continue to optimise production in preparation of future challenges, which are sure to come," VSM said.
