Chinese Shipping Policy and Regulation

Maritime Code

China’s shipping regulation is anchored in the Maritime Code of the People’s Republic of China (Haishang Fa), effective 1 July 1993. The Maritime Code governs maritime commerce, including ship registration, carriage of goods by sea, carriage of passengers, maritime towage, charter parties, maritime liens, general average, limitation of liability, marine insurance, and maritime jurisdiction.

The Maritime Code is supplemented by the Regulations on the Registration of Ships (1994, revised 2021), the Regulations on the Administration of International Shipping (2005, revised 2021), and the Maritime Traffic Safety Law (1983, revised 2021). The Ministry of Transport is the principal regulatory authority, exercising jurisdiction through the Maritime Safety Administration (MSA).

The 2021 revision of the Maritime Safety Law introduced measures addressing autonomous ships, including the requirement for ships with autonomous navigation systems to carry a qualified master capable of assuming manual control. The revision also addressed maritime cybersecurity, requiring ship operators to maintain cybersecurity management systems.

Shipping Registration

Ship registration in China is governed by the Regulations on the Registration of Ships and the Provisions on the Registration of Ships under the Chinese Flag (2021). The MSA maintains the National Ship Register (Guojia Chuanbo Dengji Ce), which records ownership, mortgage, and other registrable interests in Chinese flag ships.

A ship is eligible for Chinese flag registration if it is owned by a Chinese citizen or Chinese-funded enterprise. Ships owned by foreign-invested enterprises are generally not eligible for Chinese flag registration, though exceptions exist for ships operated under long-term charter to Chinese companies.

The registration procedure involves: (1) the application for ship name approval; (2) the application for ship measurement and survey; (3) the application for registration of ownership; (4) the application for certification (the ship’s certificate of registry); and (5) the application for the ship’s nationality certificate. The registration fee is calculated based on the ship’s tonnage.

The 2021 revision of the registration regulations introduced a special registration regime for ships under construction, enabling the registration of ownership and mortgages on ships under construction at Chinese shipyards. The reform was designed to facilitate ship financing by enabling shipyards and financial institutions to register their security interests.

Coastwise Trade Restriction

China maintains a coastwise trade restriction (yanhai yunshu xianzhi), reserving domestic maritime transport (transport between Chinese ports) exclusively for Chinese-flagged vessels. The restriction is codified in the Regulations on the Administration of International Shipping and the Regulations on the Administration of Domestic Water Transport.

The coastwise trade restriction applies to the transport of goods and passengers between Chinese ports, including coastal routes, inland waterways, and the Yangtze River. The restriction does not apply to transport between a Chinese port and a foreign port. Foreign-flagged vessels may not engage in domestic transport even where the vessel is owned by a Chinese-controlled company.

The restriction has been liberalised for certain categories. Foreign-flagged vessels may obtain approval from the MSA to engage in domestic transport on a case-by-case basis where no Chinese-flagged vessel is available. The Shanghai Free Trade Zone pilot (2013) permitted foreign-flagged ships to provide domestic feeder services for international cargo, and this pilot was extended to other free trade zones.

Flag State Control

Flag state control (qizhu guo jianguan) is administered by the MSA, which conducts safety inspections of Chinese-flagged ships to ensure compliance with international maritime conventions — including SOLAS, MARPOL, STCW, and MLC 2006 — and Chinese regulatory requirements.

The MSA exercises flag state jurisdiction through the Ship Safety Inspection System (Chuanbo Anquan Jiancha Xitong). Chinese-flagged ships are required to undergo: annual inspection (to verify compliance with safety equipment requirements); intermediate inspection (for ships over 5 years of age, focusing on structural integrity); and special survey (every 5 years, comprehensive survey of hull, machinery, and equipment). Ships that fail inspection are detained until the deficiencies are rectified.

China was retained on the Paris MoU White List in 2023, demonstrating that Chinese-flagged ships meet international safety and environmental standards.

Ship Safety Inspection

Port state control (gangkou guo jianguan) is conducted by the MSA’s local offices at Chinese ports on foreign-flagged ships calling at Chinese ports. The inspections cover safety equipment, crew qualifications, environmental compliance, and living and working conditions. The MSA has the authority to detain ships found to have serious deficiencies.

The MSA’s port state control programme targets ships of flag states with poor performance records. China has been an active participant in the Tokyo Memorandum of Understanding on port state control in the Asia-Pacific region since its establishment in 1993. The MSA shares inspection data through the Tokyo MoU database.

Yangtze River Navigation

The Yangtze River navigation system is governed by the Regulations on the Administration of Yangtze River Navigation (Changjiang Hangdao Guanli Tiaoli), effective 2020, and administered by the Changjiang River Administration of Navigational Affairs (CJRNAA).

The CJRNAA manages the Yangtze River channel, including: (1) channel maintenance and navigation aids; (2) vessel traffic management (implementing the vessel traffic service system); (3) pilotage services (mandatory for foreign-flagged vessels and vessels exceeding specified tonnage); (4) maritime safety inspections; and (5) environmental protection.

The Yangtze River is a critical transportation corridor, carrying over 3 billion tons of cargo annually. The 2020 Regulations addressed the increasing size and density of Yangtze shipping, including compulsory pilotage, the appointment of Yangtze River pilots with specialised river navigation qualifications, and the restriction of navigation during low-water periods.

Belt and Road Maritime Infrastructure

China’s shipping policy is closely integrated with the Belt and Road Initiative (BRI) maritime infrastructure programme. The BRI’s Maritime Silk Road component includes the construction and operation of ports and shipping infrastructure in Southeast Asia, South Asia, the Middle East, Africa, and the Mediterranean.

China has acquired or constructed port facilities in over 20 countries, including: the Port of Piraeus (Greece, majority stake held by COSCO Shipping); the Port of Gwadar (Pakistan, operated by China Overseas Ports Holding Company); the Port of Hambantota (Sri Lanka, 99-year lease to China Merchants Port Holdings); and the Port of Khalifa (Abu Dhabi, consortium including COSCO Shipping).

The BRI projects are governed by bilateral agreements and concession contracts, and are administered through Chinese state-owned enterprises including COSCO Shipping, China Merchants Group, and China Communications Construction Company. The legal framework for each project varies depending on the host country’s domestic law and the terms of the bilateral investment treaty.

Conclusion

Chinese shipping regulation combines the traditional public law regime — flag state jurisdiction, port state control, and the coastwise trade restriction — with the civil law framework of the Maritime Code. The coastwise trade restriction preserves domestic shipping for Chinese vessels, while the Belt and Road Initiative extends China’s maritime regulatory influence beyond its borders. The Yangtze River administration and the free trade zone pilots demonstrate the integration of shipping regulation with broader economic development policy.