After four months of waiting, Cosco and China Shipping have finally revealed the merger plans.

ANBOUND's scholars are of the view that the global shipping industry have entered into the merger and acquisition era.

In light of the overall slowdown in global demand and the slump in the freight rate, it remains a big question as to whether the shipping industry can improve its performance and business environment through restructuring exercise alone.

The reform of the enterprises owned by the central government should focus on strengthening their competitiveness. The merger exercise alone will not resolve the problem of ineffectiveness but rather it might hinder the economic transformation.