China announced on Monday that it will suspend sanctions imposed on the US subsidiaries of Hanwha Ocean, one of South Korea’s leading shipbuilders, as signs of a fragile trade truce between Beijing and Washington continue to emerge.
The suspension—effective from November 10 and valid for one year—comes after the United States halted port fees previously levied on Chinese-built and operated vessels, according to an online statement from China’s Ministry of Commerce.
“In light of this (US suspension)… China has decided to suspend the relevant measures,” the ministry said.
The decision marks a small step forward in efforts to de-escalate the prolonged tariff and trade dispute between the two economic powers. Washington and Beijing have been locked in a volatile trade war for months, but recently agreed to ease certain penalties following a meeting between President Donald Trump and President Xi Jinping in South Korea last month.
China had imposed sanctions in October on five US subsidiaries of Hanwha—Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp.—accusing them of supporting a US “Section 301” investigation. The investigation had concluded that China’s dominance in the global shipbuilding industry was “unreasonable.”
Under the initial sanctions, organisations and individuals in China were prohibited from engaging in business or cooperation with the listed entities.
The temporary suspension signals cautious optimism, though both sides have yet to resolve broader structural issues at the centre of the bilateral trade dispute.
