Ministry of Transport, Circular on Strengthening the Examination, Approval and Administration of Wholly Foreign-owned Shipping Companies

Issued: August 15 2011

Main contents: The Circular relaxed the criteria for market entry and business scope of wholly foreign-owned shipping companies (WFOSCs). Foreign shipping companies may now directly invest in the establishment of WFOSCs in China as necessary without first being required to establish resident representative offices. They are also permitted to establish WFOSCs in open port cities where they have a stable cargo source or passenger source. A WFOSC may, after it has paid in its registered capital in full and been in business for one year, establish a branch in another open port city where the foreign shipping company has a stable cargo source or passenger source. An approved WFOSC or a branch thereof may provide services such as cargo canvassing, passenger canvassing, issuance of bills of lading, passenger ticketing, settlement of freight charges and execution of service contracts for the vessels owned or operated by the WFOSC's parent company (Article 2).