Japanese industry and government sources say they have won assurances from China that its decision to ban the demolition of foreign-flag ships will not affect its progress on ratifying the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships (HKC).
China’s ratification is seen as critical to bringing a global standard for the recycling of ships into force.
Japan is keen to see China progress but it has become concerned since the Xi Jinping-led country announced the ban of foreign-flag demolitions.
However, Tokyo-based industry sources, which have been sounding out Beijing on its policy, said they have been told that there is no link between the foreign-flag ban and China’s intention to ratify the HKC.
Despite its ban, Beijing is keen to see high shiprecycling standards in foreign countries for the benefit of Chinese foreign-flag owners who need to demolish tonnage outside of the country.
“Our latest information regarding Chinese government policy is that its ban on importing aged vessels for recycling in China will not be directly linked with their action to ratify HKC, as they must protect interest of Chinese shipowners who own many non-Chinese flag vessels which will be required to recycle in foreign countries,” the Tokyo industry source said.
China’s decision not to recycle non-Chinese-flag ships appears to be more of a concern for the European Union. The European Ship Recycling Regulation, which only permits the demolition of EU-flag ships at approved yards, was heavily reliant on China to provide enough high-standard demolition facilities to dispose of the EU-flag fleet.
The European Commission, which is going through the process of approving ship-breaking yards to scrap EU-flag ships, has said it is unlikely to recognise beaching facilities on the Indian subcontinent.
Japan is going through the process of ratification and hopes to conclude the process this year. At a recent high-level government meeting with India, Japan was assured that India also hopes to progress with the ratification process.
Japan has promised to provide cheap foreign-aid loans to Indian yards to help them improve recycling standards when the HKC is ratified by the country.
