After China Merchants moved to Taiwan, it faced dual pressures both at home and abroad, with severe fluctuations in internal economic prices, and externally due to the publication of the Chinese white paper by the United States and the military threat of the CCP, which made it very difficult. In 1950, when the United Kingdom officially recognized the People's Republic of China, the ships of China Merchants in Hong Kong were detained by the British government (Note 1). The transfer of ships to the navy for use, etc., made the operation of China Merchants in the early stage of the relocation to Taiwan into trouble.
In 1951, in order to concentrate job email list shipping forces and save expenses, the government not only required China Merchants to actively repair ships and strive to expand ocean shipping, but also ordered the merger of China Tanker Corporation, which was responsible for carrying domestic and imported oil, as well as Taiwan-Japan molasses and military supplies. The situation is improving day by day; but with the increase in business volume, coupled with ship repair funds, old debts and policy needs to cooperate with the government's counter-offensive, economic, military transportation, etc., as well as huge redundancies, waste of expenses, etc., have caused a heavy burden on its operation. Long-term losses (Figure 1).
Therefore, China Merchants has actively improved its financial position since the 1950s. In addition to complying with government orders to sell idle ships, it also carried out an ocean-going ship replacement program (Figure 2). However, due to the influence of international freight rates, losses continued. By the end of 1958, the accumulated losses reached NT$64 million (the same below), which exceeded 40% of the capital of 160 million yuan. Therefore, the Ministry of Communications put forward suggestions for improvement, including: 1. Streamlining overseas institutions; 2. Strengthening shipping management; 3. Lightening the burden and increasing capital; 4. Increasing business to assist in rectification. However, China Merchants was unable to repay the old debts at that time, and had to borrow additional debts to build new ships. Therefore, the Foreign Exchange and Trade Review Committee of the Executive Yuan believed that it should first improve business conditions, increase revenue, and reduce expenses, and then consider the depreciation of ships and capital allocation. Debt repayment plan in order to stabilize its financial situation.