China is becoming the No 1 shipbuilder in the world surpassing South Korea. If China wants, it could build AC because it has the infrastructure perhaps not really the military technology. Unlike rival India or the US which focus only on military ships, China is concentrating mainly on building commercial and civilian ships bigger than AC like tankers, super container ships, all these to get foreign exchange and to companies like COSCO, Mersk etc. We must not forget that despite the current military embargo imposed by the US, EU and Japan, China has been successful in building destroyers and fregates and now it is the NO 1 shipbuilding country in the world.