Chapter 15 Port Governance in China

This chapter begins by describing China's policies of economic reform since the inauguration of its open door policy in 1978. This provides the historical context for the country's concurrent reform of its port industry. The evolution and gradual decentralisation of the port governance system is analysed within three distinct phases of development that have taken the sector from one where ownership and decision-making were highly centralised to one where policies of corporatisation and privatisation have been recently reinforced by China's new Port Law of 2004. The chapter concludes by asserting that it is still too early to tell whether the latest phase of reforms will prove to be successful in solving China's port problems - particularly the capacity issue - and points to possible implications of the reforms for overseas investment and future levels of concentration within the market.