China will allow foreign investors to establish shipping enterprises, according to new guidelines that aim to boost the shipping sector.

Shipping businesses fully owned and controlled by foreign investors can be founded within the China (Shanghai) Pilot Free Trade Zone.

The guidelines issued by the State Council on Wednesday pledged to give an open door to foreign investors and private companies in the shipping industry.

The 10 shipping companies listed in China reported a total loss of nearly 1.5 billion yuan ($243 million) for the first six months of this year, according to their financial reports.

Currently, more than 90 percent of China's international trade is carried out by sea, according to official data. But He said only 25 percent of China's imports and exports are carried by domestic shipping companies.

To boost the industry, the central government has decided to restructure the shipping sector by prioritizing its development as a national strategy, facilitating the expansion of selected enterprises and helping coastal cities build "international shipping hubs".

Over the past year, the Ministry of Transport has abolished 26 administrative approval procedures that governed shipping operations, aiming to reduce government intervention, He said.