It is reported that four Chinese shipping companies have received subsidies from the Chinese government worth a total of RMB1.8 billion （$293.3 million）for retiring old ships and upgrading their fleets.

China Ocean Shipping Company has received RMB1.379 billion ($224.6 million) for scrapping old ships and upgrading new vessels.

China Shipping Development Co (CSDC) and China Shipping Container Lines (CSCL) announced that they received a combined RMB225 million ($41.5 million). CSDC has secured RMB215 million ($35 million) for scrapping 15 of its older vessels between January and April 2014, whereas CSCL won RMB40 million ($6.5m) for decommissioning and sending for scrap five of its vessels.

The government initiative, launched late last year, was triggered by a steep downturn of the country’s industry struck by overcapacity.