In a bid to support and modernise its shipping industry, the Chinese Ministry of Transport has laid out plans to encourage mergers and private investment.
It is focusing on the shipping industry in order to secure supply chains, as it grows more assertive over territorial disputes in the South China Sea, according to Reuters.
The Ministry outlined how it plans to implement reforms in a document on its website recently, saying it aims to achieve most of its targets over the next four years.
According to the document, the Chinese government has said it would conduct research on how to promote mergers and acquisitions between the shipping industry's firms.
It also stated that it would encourage specialisation and actively encourage mixed-ownership reform for its state-owned shipping firms.
Finance and insurance institutions would be asked to increase their support to help promote the development of the country's ship leasing and insurance sectors, with the aim of achieving results by 2015.
China’s decision to modernise the industry was triggered by a prolonged slump brought on by excess ship orders before the global financial crisis that occurred in 2008-2009.
