China hawks Shanghai as shipping hub
China's central government this week unveiled plans to strengthen Shanghai's role as a global shipping and financial hub, the state-owned news outlet Xinhua reported.
The report indicated the government would continue to improve infrastructure at Shanghai's port, already the second-busiest container port in the world and expected become the top port in the next few years. It said efforts would be made to integrate resources from smaller neighboring ports in the Yangtze River Delta and to promote transshipment services at lower costs. Finally, the government said it is seeking to 'enhance the competitiveness of domestic shipping firms.'
The new plans would extend the deadline of tax shelters for domestic ships under flags of convenience from June 30 to June 30, 2011, and it may initiate tax rebates for ports of departure.
Another major development could come through the allowance of major domestic shipping companies to set up financial leasing firms, and actively and steadily encourage such firms to trade and issue bonds on the Shanghai-based inter-bank market, the report said.