China tightened regulations for domestic shipyards

China shipyardsChina’s Ministry of Industry and Information Technology (MIIT) tightened regulations for domestic shipyards in relation with business and management. The Chinese government proposed new regulations intend to improve the shipyard white list. According to the proposal, the shipyards that haven’t delivered ships and received new orders and haven’t had ships under construction for more than one year, the shipyards that haven’t delivered ships and received new orders for more than two years, the shipyards that have suspended operations and declared bankruptcy, and shipyards that have been acquired and lost legal independency, will all be removed from the white list.

The new regulations will delist the inactive shipyards and empty companies, which might benefit from the tax and import easing, which shipyards have. So far 7 from the 71 shipyards in the white list have already suspended operations or bankrupted. Already bankrupted shipyards Sinopacific Offshore, Mingde Heavy Industry, Rongsheng Heavy Industries, Sainty Marine, JES International Holdings, Zhejiang Shipbuilding and Zhenghe Shipbuilding will be automatically removed from the shipyard white list.

The new regulations also request the shipyards to submit a self-examination report every year and authorities will conduct investigations at the shipyards every two years.