Shipping and China Ocean Shipping Company

The sale of the fleet marked the end of one of China’s steps toward industrial progress. Modern Chinese shipping is divided into two key periods: 1949–1978 and 1978–to date. All political and economic events discussed in the previous chapter have impacted the formation of China’s shipping industry. Prior to 1949, the shipping industry was privately owned and operated. Since its foundation, the People’s Republic was economically isolated and had very few diplomatic relations with noncommunist countries. The 1957 shipping recession caused both freight costs of leasing vessels and the revenue from liner operations to significantly drop. The Chinese government reacted by protecting its interests and demanding the annulment of tariffs on Chinese cargos. In 1964, the Chinese government decided to purchase second-hand vessels to grow the country’s fleet. By 1990, the Chinese maritime business had expanded in oceangoing shipping as well as coastal and inland transport companies.