This Chapter examines the persistent prevalence of merchant vessel-fishing boat collisions in China’s coastal waters, as highlighted by a 2025 Ministry of Transport bulletin. Despite technological advancements mitigating environmental risks, collision frequency remains a critical concern. The analysis scrutinizes the foundational liability framework established by international instruments like the 1910 Collision Convention and China’s Maritime Code 1992, identifying theoretical gaps in traditional tort principles. It evaluates how recent developments in Chinese tort law provide a refined basis for allocating liability and calculating damages. Focusing on the interplay between statutory provisions and judicial precedents from the Supreme People’s Court and specialized maritime courts, the study identifies systemic ambiguities in current collision liability determinations. Through an examination of key cases and interpretive guidelines, it advocates for a harmonization of domestic norms with prevailing international maritime standards to enhance legal certainty.