China Merchants, which has a long history in shipping industry, was changed from national government to state-owned in 1930. Its predecessor was the Shipping Merchants Bureau founded by Li Hongzhang in 1872 (11th year of Tongzhi), which was the first private enterprise founded by the Westernization School in the late Qing Dynasty and the first shipping company in China. After its establishment, it was reduced in price by American businessman Qi Chang, British businessman Swire and Jardine Matheson Shipping Company in an attempt to crush and continue to monopolize the shipping industry in China. China Merchants Shipping meets the challenge, contracting grain and collecting goods. 1885 (the 11th year of Guangxu) was changed from Sheng Xuanhuai to the official and commercial office, and 1909 (the year of Xuantongyuan) was managed by the post office. After 1930 was changed from the national government to the state-owned, 1932 belonged to the Ministry of Communications, and since then it has become an organization monopolized by the four families of the Kuomintang.
Since the end of World War I, foreign ships have returned to inland rivers along the coast of China to resume navigation. In addition, frequent civil wars, frequent bugles and shipwrecks have dealt a great blow to the self-operated shipping industry. 1927, China Merchants only accounts for 2. 1% of the total freight of the Yangtze River route. Although it has increased since then, it only accounts for 16.4% in 1936. After the outbreak of War of Resistance against Japanese Aggression, foreign ships were evacuated one after another, and the self-operated shipping industry made great efforts to transport the equipment and military materials moved from hundreds of factories in Shanghai by land and water. During the war, the direct and indirect losses of China's ships totaled 3,000 ships with 495,320 tons. After the victory of the Anti-Japanese War, shipping companies made efforts to restore water transport. According to the statistics of the Ministry of Communications in June 1947, there were 150 1 ship at that time, accounting for 179893 tons. Inland navigation has not recovered to the pre-war level.