The memorandum of understanding (MoU) with the state yard group paves the way for Carnival to stretch its reach in what it regards as a key growth market.

The deal could also bring in Italian shipbuilder Fincantieri, a cruiseship specialist.

The Chinese market is expected to reach 4.5m passengers by 2020, according to the Chinese Ministry of Transport (MOT).

Carnival will help "define" the first major cruiseship built in the country.

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