Additional Guidelines to Help Support and Modernization of China’s Shipping Industry
China issued additional guidance for the support and modernization of its shipping industry and further encourages mergers and private investment to develop is cruise industry as well. As the country comes to its global shipping industry showed signs of struggling to recover from the slump brought by the glut of ships that was ordered before the global financial crisis of 2009.
The Ministry of Transport has laid out their plans to implement reforms in a document that was presented on their website, stated that the ministry is aiming to achieve most of its targets in the next four years. The guidelines were first published in September to support and develop the shipping industry. In October a document released by the government stated that it will be conducting research on how to further promote mergers and acquisitions between shipping firms and encourage specialization that would also encourage mixed ownership reforms for State owned shipping firms.
Several financial and insurance institutions will be asked to increase support for the shipping industry to help the development of the ship leasing and insurance sectors. Foreign companies will also be allowed to set up firms without the need of a Chinese joint venture partners in the Shanghai Free Trade Zone.