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Shipping giant Evergreen finds way to expand in China
2002/02/07

Taipei - Taiwanese Evergreen Marine, the world's biggest container shipping company, prepares to expand its business on the mainland. To gain better access to the market, the company will register about half of its fleet in Europe.

By registering abroad, Evergreen found a way to deal with restrictions it is currently facing. This means, primarily, Taiwan's ban on direct trade with China. And, according to analysts, China's limitations for Taiwanese shipping companies to establish agencies on the mainland, the Financial Times (FT) writes on Wednesday.

Evergreen-chairman Chang Yung-fa said he already registered two of an initially planned 40 vessels in Britain, according FT. Another 40 vessels will be registered in Italy. "Italy said it will treat Evergreen ships as Italian ships, and ask China to treat Evergreen's investment in China the same as Italian firms' investment", Chang told The Taipei Times. According to the paper, it is likely that Evergreen already got permission of the Chinese authorities to enter the mainland's shipping market through European subsidiaries.

Taipei has harshly criticized Evergreen's apparent attempt to win Beijing's favor. Minister of Economic Affairs Christine Tzung said that though companies can make their own choices, and the government won't interfere with actions of businesses, "one should not place personal interests before those of the nation".

Before, various companies found other ways to dodge the current limitations, like making a detour through Japanese territorial waters. However, as larger companies can effort these solutions, smaller businesses keep suffering from the current restrictions

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