Beijing: State run newspaper China Daily reported today plans by the government to protect domestic shipping lines from foreign competition that is deemed to be undercutting local firms.
The primary enforcement tool will be intensified monitoring of how foreign shipping firms set their rates, the official newspaper said quoting comments by a top transport official.
Foreign lines will be subject to “market supervision” by regulators, the article suggested.
Song Dexing, director of the water transport department under the Ministry of Transport, was quoted on the sidelines of a conference on Thursday saying the new system will be helpful if "foreign industrial giants" attempt to stage unfair competition.
"If a company is suspected by other players to have slashed or raised rates maliciously when the market is volatile, we can launch an investigation against it to find out if there is unfair competition. I believe the shipping companies will act more cautiously when changing rates," he said.
“Surely this is a case of the pot calling the kettle black,” one Hong Kong shipping analyst told SinoShip News. “Everyone knows that in years past it has been the Chinese undercutting the market to gain market share.”
Other policies under consideration include the restructuring of shipping capacity, a special capital fund for easing out old vessels and reducing taxes for shipping lines. [12/07/13]
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