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Other Fish in the Sea

As China ups investments in modernizing deep-sea fish farming, high costs and sustainability issues loom large over its long-term development, experts say

By Wang Yan , Yang Zhijie Updated Apr.1

Haiwei 2, a giant intelligent breeding platform carrying about 1 million ffsh fries of more than 100,000 kilograms of golden pompano, September 2023, at Liushawan, South China Sea (Photo by Xinhua)

By mid-January, Deep Blue 2 had reaped its first harvest – 400,000 high-quality salmon – about 120 nautical miles off the coast of Qingdao, East China’s Shandong Province. 

Launched early last year in the country’s first national green aquaculture pilot zone, this deep-sea fish farm – complete with remote control, automated feeding and monitoring capabilities – is designed to produce up to 1,800 tons of salmon a year. 

Deep Blue 2 is enormous. Its hexagonal offshore cage is 71.5 meters tall and nearly as wide. When fully submerged, it holds 90,000 cubic meters of water – equivalent to 204 standard swimming pools. 

Constructed by Qingdao Shipbuilding Company (QSC) in Shandong Province, Deep Blue 2 draws from the company’s previous experience building the world’s first deep-sea aquaculture farm for Norway. The 69-meter-tall, semi-submersible Ocean Farm 1, designed by Norwegian salmon farming giant SalMar ASA, was completed by State-owned QSC in 2017. 

Inspired by this innovation, China began developing its own deep-sea fish farming industry, starting with Deep Blue 1 in 2018 by Qingdao Wuchuan Heavy Industry Company. 

Located 120 nautical miles off the coast of the Yellow Sea of China and also in the same national pilot zone, Deep Blue 1 is yet another farm in the world’s increasing move toward deep-sea aquaculture as a source of food production. However, concerns over sustainability and environmental impact are spawning debate worldwide – with China facing its own set of challenges.

Rising Industry 
According to the 2024 State of World Fisheries and Aquaculture report by the Food and Agriculture Organization (FAO), global aquaculture production reached a record 130.9 million tons in 2022, surpassing wild capture fisheries (91 million tons) for the first time. China maintained its position as the world’s top producer, accounting for 36 percent of global output, followed by India, Indonesia, Vietnam and Peru. In 2023, China’s aquaculture area covered 7.6 million hectares, producing over 58 million tons of seafood, with per capita consumption at 50.48 kilograms – well above the global average. 

Aquatic food consumption has been increasing for decades, particularly in China. From 1961 to 2021, global consumption per capita grew from 9.1 to 20.6 kilograms. Asia saw 1.9 percent annual growth over those 60 years, driven primarily by China, which went from 4.3 kilograms to 41.6 kilograms for 3.8 percent annual growth. 

Traditional coastal aquaculture faces mounting challenges, including pollution, resource constraints and space limitations. Deep-sea aquaculture offers a promising alternative. According to Professor Wang Zhiyong of Jimei University’s Fisheries College in Fujian Province, deep-sea farming is an inevitable solution to the environmental degradation caused by high-density coastal aquaculture. In the Fujian city of Ningde – where 80 percent of China’s large yellow croaker is farmed – intensive farming has led to severe seawater pollution and significant economic losses. 

“After more than two decades of high-density, mechanized overfarming, the coastal seawater environment is severely deteriorated. Prolonged overcultivation in the same areas, coupled with inadequate seawater purification, has led to frequent disease outbreaks, causing mortality rates of more than 50 percent among farmed yellow croaker and resulting in significant financial losses for local farmers,” Wang told NewsChina. 

Given these challenges, expanding aquaculture into open-sea areas – particularly large yellow croaker farming – is seen as a necessary step forward. 

In June 2023, eight government departments, including the Ministry of Agriculture and Rural Affairs, issued China’s first official guideline on deep-sea aquaculture, limiting operations to at least 10 kilometers offshore and cages to waters at least 15 meters deep. 

Between 2016 and 2023, China’s offshore aquaculture production grew from 119,300 to 416,600 tons, while the total aquaculture water volume expanded from 10.68 million to 46.28 million cubic meters. The sector has maintained annual growth rates of around 20 to 23 percent. 

In 2020, Qingdao Guoxin Group, working with the Fishery Machinery and Instrument Research Institute of the Chinese Academy of Fishery Sciences, launched Guoxin 1, the world’s first 100,000-ton aquaculture vessel. At 250 meters, Guoxin 1 was delivered and put into operation in May 2022. By September of that year, its first batch of framed large yellow croaker had reached the market. 

Guoxin 1 features 15 aquaculture compartments and functions as a mobile farming and processing facility, managing the entire production cycle from stocking to slaughter. It operates across China’s deep-sea regions, including the Yellow, East China and South China seas, adjusting locations based on water temperature and environmental factors. For example, when farming large yellow croaker, the vessel moves between Qingdao and Fujian to align with the species’ natural migration patterns. 

Local governments have introduced incentives to promote deep-sea aquaculture development. Provinces such as Hainan, Shandong, Zhejiang and Fujian provide subsidies ranging from 10 million yuan (US$1.37m) to 150 million yuan (US$20.6m) for aquaculture vessels and truss-type cages, whose rectangular structures are designed to withstand rough waters. Since 2018, China has deployed 40 deep-water truss-type cages, including Dehai 1, Penghu, Fubao 1 and the Jinghai series. 

According to the Ministry of Agriculture and Rural Affairs, China has four aquaculture vessels, 40 truss-type cages and 20,000 “gravity cages,” which float on the surface as weights hang below to stretch out their nets. 

Despite this progress, experts warn that domestic deep-sea aquaculture equipment remains in an early exploratory phase, with companies still developing sustainable business models. 

The No. 1 central document of 2024, which laid out China’s rural and agricultural policy priorities for the year, reiterated government support for deep-sea and offshore aquaculture, continuing a policy focus introduced in 2023. 

Following the successful operation of Guoxin 1, Shenzhen announced plans to build four 100,000-ton aquaculture vessels, while Zhuhai in Guangdong aims to construct eight to 10 such vessels within five years. In 2023, Guoxin Group also began building Guoxin 2-1 and Guoxin 2-2, upgrading to a 150,000- ton capacity. The company pledged to invest in 50 additional vessels over the next five years, forming 12 deep-sea aquaculture fleets for a combined tonnage of over 10 million. 

According to an anonymous industry insider interviewed by NewsChina in January 2025, demand for deep-sea fish farming equipment in China is surging at an unprecedented pace. While the industry is expanding rapidly, challenges remain in scaling operations, ensuring sustainability and complying to global standards.

Cost Matters 
Compared to gravity cages, truss-type cages and aquaculture vessels offer greater resistance to wind and waves, enabling large-scale and intensive aquaculture. However, their construction costs far exceed those of gravity cages. According to Guan Changtao, a researcher at the Yellow Sea Fisheries Research Institute of the Chinese Academy of Fishery Sciences, gravity cage technology is now relatively mature. Smaller models cost less than 100,000 yuan (US$13,700), while larger-scale projects remain under 1 million yuan (US$137,300). In contrast, truss-type deep-sea cages, capable of withstanding typhoons of magnitude 15 or even 17, can cost tens of millions of yuan or more. 

Publicly available data shows that the construction cost of the Deep Blue 1 aquaculture vessel reached 110 million yuan (US$13.73m), while Guoxin 1 cost 450 million yuan (US$61.8m). 

Due to such high investment requirements, the construction and operation of large-scale deep-sea aquaculture equipment are primarily undertaken by State-owned enterprises, with only a few private companies involved. 

Guo Genxi, chief scientist of fishery equipment engineering technology at the Chinese Academy of Fishery Sciences, noted that in his decade-long experience in the industry, keeping operating costs below 1,000 yuan (US$137) per cubic meter of water is essential for a project’s viability. 

Currently, Deep Blue 1’s cost per cubic meter stands at 2,200 yuan (US$302), while Guoxin 1 is 5,625 yuan (US$772). 

Among existing truss-type deep-water cage projects in China, only two – Guangdong Province’s Dehai series and Fujian Province’s Strait 1 – have managed to keep costs below the 1,000 yuan threshold. “It remains a significant challenge for enterprises to ensure long-term, sustainable operation,” Guo cautioned. 

Experts interviewed by NewsChina pointed out a fundamental flaw in China’s deep-sea aquaculture development: the high equipment investment costs. If farmers cultivate marketable yet low-priced fish like large yellow croaker, their costs will outweigh revenue. However, if they opt for high-value fish, the prices may become unaffordable for average consumers. 

To offset costs, enterprises often choose fish with higher economic value. Guan Changtao explained that climate differences across China influence the species cultivated in different regions. In the South China Sea, deep-sea aquaculture focuses on golden pompano and cobia. In the East China Sea, the dominant species is large yellow croaker. The Yellow and Bohai seas host a variety of aquaculture species, though none are optimal for large-scale deep-sea farming.

Species Search 
Professor Luo Jian of Hainan University, an expert in fish breeding, emphasized the importance of selecting the right species given the high output of large aquaculture vessels. When coastal aquaculture farmers sell yellow croaker for 40 to 60 yuan (US$5.4 to 8.2) per kilogram, a price above 100 yuan (US$13.8) for fish farmed on large vessels like Guoxin 1 becomes uncompetitive. “We are actively researching and cultivating species that fit a mid-tier market price,” Luo told NewsChina. 

China’s approach to deep-sea aquaculture differs from Norway’s. Over decades, Norway has established itself as the world’s largest salmon producer, developing a complete industrial chain before expanding aquaculture infrastructure. “Norway first identified a suitable species – Atlantic salmon – and built an entire industrial chain around it before constructing aquaculture facilities. In China, we often build facilities first and then search for the right species to farm,” Guan said. “As a result, the final market for these projects remains unclear.” 

China’s deep-sea aquaculture industry is still in its early stages. According to Guo Genxi, the priority should be achieving a balance between income and expenditure before pursuing profitability. “The success of one project does not guarantee success across the industry,” he cautioned. 

Many experts believe reducing costs is crucial for the industry’s future. Potential solutions include lowering equipment costs or increasing production capacity. At present, most projects remain in trial operation and have not reached their designed production capacities. 

Not all fish species are suitable for high-density farming. Dong Shuanglin, another expert in the field, cited large yellow croaker as an example. Higher farming densities make them more susceptible to disease, and current farming techniques have yet to resolve this issue. 

Guo Genxi added that in places like China’s Hong Kong and Norway, marine farming permit applications are stringent. Governments balance economic benefits with environmental sustainability by capping the scale of aquaculture operations and limiting the biomass of farmed organisms. “On the Chinese mainland, this issue has not yet received sufficient attention,” he noted. 

Experts also believe equipment costs can still be reduced. “The industry should focus on improving equipment design to ensure both safety and cost efficiency,” Guo said. 

In the long run, the profitability of deep-sea aquaculture will depend on strengthening the entire industrial chain. Hu Zhenyu, deputy director of Qianhai Branch of the China Development Institute (Shenzhen), pointed out that key aspects – such as upstream breeding, feed supply, equipment manufacturing, cold-chain logistics, distribution and cross-border e-commerce – require further integration and improvement.

Scientiffc Assessment 
High-tech deep-sea aquaculture equipment has been hailed as a breakthrough in sustainable seafood production, promising to mitigate resource depletion and environmental impacts (eutrophication risk etc.) associated with traditional aquaculture. For example, Deep Blue 2 is designed to maximize production efficiency while minimizing ecological impact through advanced digital and intelligent systems. 

Despite its potential, challenges could hinder the industry’s long-term sustainability. Hu Zhenyu has long studied the marine economy. He told NewsChina that aquaculture vessels serve as an exploratory model for deep-sea aquaculture but are high in carbon emissions, energy consumption and operational costs. To isolate disease sources and improve survival rates, these vessels must continuously pump and replace deep-sea water – up to 16 times per day – using diesel-powered generators. This not only makes the process expensive and difficult to sustain but also generates exhaust, wastewater and noise. 

Professor Cao Ling from Xiamen University’s State Key Laboratory of Marine Environmental Science noted that compared to inland or coastal farming, deep-sea aquaculture reduces environmental risks like eutrophication – where excessive nutrients in water produce dangerous surges in plant life. 

However, deep-sea aquaculture is not inherently sustainable and requires science-based, strategic planning to ensure its long-term sustainability. 

Professor Cao emphasized the importance of careful site selection in ensuring the success of deep-sea aquaculture. “A thorough scientific evaluation is key before setting up operations. Additionally, deep-sea cages must be designed to withstand extreme weather conditions to prevent issues such as fish escaping into the wild, thus avoiding the risk of biological invasions,” Cao explained. “Proper design and planning can also minimize the likelihood of disease transmission to wild populations and help preserve ecological integrity.” Cao further stressed a coordinated national-level strategy. 

Given the high costs and risks associated with deep-sea aquaculture, many experts interviewed by NewsChina agreed that local authorities should conduct rigorous scientific assessments of its social, economic and environmental implications. Rushing into large-scale projects without careful planning could lead to unexpected consequences, affecting the industry’s long-term viability.

An Atlantic salmon harvested from the Deep Blue 1 deep-sea aquaculture cages, April 16,2023[Photo courtesy of Qingdao West Coast New Area]

The world’s ffrst 100,000-ton large aquaculture vessel Guoxin 1 is delivered in Qingdao, May 20, 2022 (Photo by VCG)

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