China to Revamp Its Shipping Industry
- Business & Finance
Global trading giant China has released a new guidance aimed at boosting the country’s shipping industry and ensuring a stronger grip of its supply chains.
Under the new set of guidelines, Chinese shipping companies would have to rejuvenate their fleets by 2020, making them as environmentally friendly and safe as possible.
Also, under the new regulatory reforms China plans to introduce, owners will be encouraged to retire their outdated vessels and improve their corporate structure so as to catch up with the competitors.
The regulatory reforms are expected to include tax benefits as well.
“Shipping is a key component in economic development and plays an important role in protecting a country’s maritime rights and economy, in promoting exports and industrial development,” the State Council said in a statement.
Chinese shipping companies suffered considerable losses when compared to their international competitors.
Nevertheless, as reported by Reuters, the announcement has seen shares in state-backed China Shipping grow 6.8 percent at 05:40 a.m. BST, while Hong Kong-listed shares in China COSCO were 1.2 percent higher. China International Marine Containers Group Ltd was trading 7.6 percent higher, Reuters reports.
China’s total shipping capacity totaling of 142 million DWT occupies 4th place on a global scale.