A Comparative Analysis of Ship Registration Competitiveness: Can Hainan FTP Attract China-Owned FOC Vessels Back

Abstract

This study investigates the international competitiveness of ship registration policies in attracting the repatriation of China-owned flags of convenience (FOC). Based on data from UNCTAD and Clarksons Research (2019-2023), over 89% of the foreign-flagged tonnage owned by Chinese entities is concentrated in four jurisdictions: Hong Kong, China; Panama; Liberia; and the Marshall Islands. Through a systematic comparative analysis of registration requirements, tax regimes, and administrative efficiency across these four flag states and China's Hainan Free Trade Port (HFTP), this paper identifies key institutional gaps. Findings reveal that while HFTP offers significant import duty exemptions, it lags in legal certainty, service ecosystem maturity, and comprehensive tax parity. The study concludes that for Hainan FTP to effectively attract repatriation, it must achieve legal certainty, mature maritime service ecosystems, and comprehensive tax parity with leading open registries.