Strategy Page on one of the ways Chinese ship builders are adapting to a tougher market for new ships:
Recent photos from China show three 1,500 ton coastal patrol ships (“cutters” in American parlance.) being built simultaneously, next to each other. This is part of a 36 ship order, in part to help the domestic ship building industry, for the China Marine Surveillance (CMS). Seven of the new ships are the size of corvettes (1,500 tons), while the rest are smaller (15 are 1,000 ton ships and 14 are 600 tons). The global economic recession has hit shipbuilding particularly hard over the last four years, and China is one of the top three shipbuilding nations in the world. For a long time coastal patrol was carried out by navy cast-offs. But in the last decade the coastal patrol force has been getting more and more new ships (as well as more retired navy small ships). Delivery of all 36 CMS ships is to be completed in the next two years.
The CMS service is one of five Chinese organizations responsible for law enforcement along the coast. The others are the Coast Guard, which is a military force that constantly patrols the coasts. The Maritime Safety Administration handles search and rescue along the coast. The Fisheries Law Enforcement Command polices fishing grounds. The Customs Service polices smuggling. China has multiple coastal patrol organizations because it is the custom in communist dictatorships to have more than one security organization doing the same task, so each outfit can keep an eye on the other.
CMS is the most recent of these agencies, having been established in 1998. It is actually the police force for the Chinese Oceanic Administration, which is responsible for surveying non-territorial waters that China has economic control over (the exclusive economic zones, or EEZ) and for enforcing environmental laws in its coastal waters. The new program will expand the CMS strength from 9,000 to 10,000 personnel. CMS already has 300 boats and ten aircraft. In addition, CMS collects and coordinates data from marine surveillance activities in ten large coastal cities and 170 coastal counties. When there is an armed confrontation over contested islands in the South China Sea, it’s usually CMS patrol boats that are frequently described as “Chinese warships.”