A debate over what amounts to fair competition between shipbuilders has been raging for the past half-century. How much direct or indirect financial support should national governments be allowed to provide to their shipyards?
In theory, state aid is not allowed in the European Community because it distorts competition between member states. But in the Far East, where three countries — China, Japan and South Korea — sweep up more than three-quarters of world newbuilding orders, the playing field is different.
