CHINA has given four shipping lines including China Cosco CNY1.8 billion (US$293.3 million) in subsidies to scrap old ships and build news ones, Reuter reports.

China recently made good on its December announcement to subsidise the replacement of old ships with greener, more fuel-efficient ones as well generate orders for its shipbuilders.

China Cosco said it had received CNY1.48 billion to compensate it for scrapping vessels, while China Shipping said it received CNY255 million for scrapping 15 ships.

Despite earlier statements to reduce support for industries with overcapacity, Beijing said it was reluctant to allow losses to accrue in shipping and shipbuilding.