MARAD BLASTS “RESTRICTIVE” CHINESE MARITIME RULES

MARAD BLASTS “RESTRICTIVE” CHINESE MARITIME RULES

MARAD BLASTS “RESTRICTIVE” CHINESE MARITIME RULES

   In a strongly-worded letter to Hong Shanxiang, China’s vice minister of communications, U.S. Maritime Administrator Captain William Schubert urged the Chinese government to rethink the new implementing rules for China’s controversial Regulations on International Maritime Transportation.
   Schubert complained that, under the implementing rules, and their associated regulations, “the Chinese government seeks to exert a central dominating position over commercial activities that is fundamentally inconsistent with international standards.”
   He also accused the Chinese of not having followed through with reassurances given to U.S. officials during recent bilateral talks on the Chinese regulations.
   The implementing rules, published for comment on June 21, “have neither liberalized nor clarified the regulations but have added restrictions to those in the regulations,” Schubert alleged.
   China adopted the new maritime regulations last December, prompting widespread concerns and criticisms among U.S. government officials and organizations representing shippers and intermediaries.
   Schubert alleged that the regulations “have created a serious credibility problem with respect to China’s attitude towards international shipping and trade.”
   “The regulations impose new limits on the activities of commercial entities that collectively constitute the international shipping market in a manner prejudicial to the interests of China’s trading partners,” Schubert said.
   He said that the regulations “empower the Ministry of Communications to control liner service pricing terms, including service contract prices, and to impose unduly burdensome licensing, registration and other requirements on business activities of non-Chinese companies.”
   The Maritime Administration reminded the Chinese official that China is committed, under the World Trade Organization, not to use licensing procedures as barriers to market access.
   Schubert also questioned the need for the Chinese requirement that non-Chinese non-vessel-operating common carriers keep a bank deposit in China of 800,000 yuan (about $100,000), rather than a surety bond.
   He also noted an apparent departure from the Chinese officials’ earlier statement that vessel calls would not have to be “approved” by the authorities, but merely notified. Schubert cited requirements that non-Chinese operators would now have to be approved to provide services linking the Chinese mainland and Hong Kong or Macao, and services via a third place between the mainland and Taiwan.