Sea Use Fees in China: An Effective Economic Tool for Sea Use Management

The application of licensing or permitting systems to sea areas is one of the most popular and effective regulatory approaches to sea area management worldwide. In 1993, China implemented a sea use fee (SUF) system, which has been gradually improved over time. China is one of the countries with the highest number of sea use activities and the most intensive sea area development. The SUF system is the most important economic tool to manage the waters, as well as to coordinate the relationship between resource allocation and marine environmental protection. In this context, the SUF is the charge for the license that a sea user is required to obtain for the right of exploiting sea areas from the state. This article focuses on the Chinese SUF system, which is based on area grading and use types. Moreover, policies and regulations related to the fee and use of SUF in the country are introduced, and an analysis of problems that have arisen in implementation of the SUF system is presented. Finally, a prediction on the future focus of the reform of the Chinese SUF system is outlined.