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Lloyd's Maritime and Commercial Law Quarterly

THE CHINESE MARITIME LAW OF SALVAGE

Yong-Shen Huang *

The People’s Republic of China is one of the world’s major shipping nations. Yet until recently its maritime law was seriously underdeveloped. However, in 1992 its first maritime code was promulgated, incorporating the major international Conventions on commercial shipping, including the 1989 Salvage Convention. This article considers the approach of the Chinese law of maritime salvage in comparison with the 1989 Convention and international practice.

I. INTRODUCTION

The Maritime Code of The People’s Republic of China (hereinafter “the Code”), the first maritime code in China, was promulgated on 7 November 1992 and came into force on 1 July 1993. It is one of the important milestones in the history of the development of the shipping industry in China and signifies an advance in the development of the legal system in the shipping field.1
China, as one of the major shipping countries, has a national fleet of over 13 million tons gross, ranking ninth in the world, and its vessels sail to over 1,100 harbours in more than 150 countries or territories. At the same time, there are also 150 countries’ vessels sailing in and out of Chinese harbours. Over 90% of the import and export cargo in China is transported by ship.2 China not only has a huge national fleet but also holds the largest salvage potential. From 1981 to 1991, Chinese professional salvage companies conducted 358 dry (i.e., traditional) salvage operations, and 168 wet ones (i.e., wreck removal or the recovery of valuable cargo or dangerous polluting substances posing a threat to the marine environment).3 It is hard to believe that China has almost no salvage law except some unpublished administrative regulations or directives.
In drafting the Code, the Chinese legislature decided to keep in line with the development of international maritime law, which can be seen from the fact that it nearly incorporates all the major international Conventions regarding commercial shipping into

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