Tuesday, October 23, 2012

China shields domestic shipping industry from outsiders

China is limiting its domestic companies, requiring them to only operate China-made ships on domestic waters and preventing foreign shipping companies from selling their services on domestic routes, according to new rules issued by Beijing's State Council.

The new regulations, effective Jan. 1, keep "foreign companies, financial organizations and individuals from operating waterway transport services," said the council statement.

The new rules shield domestic shipping in China during a time when the industry is plagued by overcapacity and low demand. Moving forward, China could limit foreign investment in the $160 billion marine infrastructure development package that was sanctioned in September.

For more of the Reuters story: reuters.com

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