China to Relax Market Access for Foreign Owned Shipping Companies
China is planning to relax market access conditions for wholly foreign-owned shipping companies, that will allow them to touch a wider scope of business in the country. A foreign shipping company is allowed to directly establish a wholly foreign-owned shipping company in China upon its actual needs, without first establishing a representative office.
Then the foreign shipping company is allowed to establish a wholly foreign-owned shipping company in an opened-up coastal city where the company has stable goods supply or passengers. Then after a year after a wholly foreign-owned shipping company fully pays up its registered capital and starts its business operation, it may establish a branch in any other opened-up coastal city where it has stable goods supply or passengers.
The foreign-owned shipping company or any branch thereof is allowed to provide services such as seeking potential shipping deals or passengers, issuing bills of lading, issuing passenger tickets, settling transport fees and signing service contracts to ships owned or operated by the parent company.
Before going through the regular registration procedures for the Chinese establishment of a wholly foreign-owned shipping company at the provincial commercial departments, a foreign shipping company shall first submit an application to the Ministry of Transportation to obtain its approval. Any other issues related to the establishment of a wholly foreign-owned shipping company shall proceed according to the Interim Measures for the Administration of Approval for Foreign-owned Shipping Companies.