China will aid struggling shipbuilders with new subsidies for replacing old ships by the end of 2015 to support a sector that is still affected by overcapacity and low freight rates, Reuters reported. The central government will provide US$247 (RMB1,500) per gross ton to replace old ships with new, more environmentally friendly vessels, a government statement said. The scheme is only valid for ships scrapped one to ten years ahead of mandatory retirement dates. The state subsidies are the latest given to Chinese ship builders, suggesting the government is loath to see a big industry that is also a big employer wither.
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