China Banks Consider Ship Mortgages to Counter US Tariffs

Chinese banks are exploring ship mortgages as a defensive strategy against US tariffs, aiming to mitigate the impact of steep port fees imposed in mid-October. The MOVE could shield both lenders and Chinese shipowners from escalating trade tensions, though regulators remain cautious about introducing new financial risks.

The National Financial Regulatory Administration (NFRA) is monitoring discussions but has yet to approve the proposal, weighing the potential exposure of banks to an industry traditionally deemed high-risk. With nearly $100 billion in shipping assets tied to China-backed firms, any shift in funding structures could Ripple through global markets.

Beijing faces a delicate balancing act: protecting domestic institutions while avoiding further strain on a financial system already grappling with property market downturns and slowing growth. The outcome may redefine China's dominance in global shipping finance.