China announced on Monday that it would suspend sanctions against the US subsidiaries of Hanwha Ocean, one of South Korea’s largest shipbuilding giants, as part of a fragile truce in the ongoing trade dispute between the United States and China, News.Az reports, citing foreign media.
The sanctions, which had been imposed in October, targeted five US-based subsidiaries of Hanwha, accusing them of supporting a US government “Section 301” investigation that criticized China’s dominance in the global shipbuilding industry.
In response to this, China had banned its organizations and individuals from cooperating with these Hanwha subsidiaries, including Hanwha Shipping LLC and Hanwha Philly Shipyard Inc.
However, following a meeting between Chinese President Xi Jinping and US President Donald Trump in South Korea last month, the two countries agreed to reduce some of the punitive trade measures. China’s commerce ministry stated that, in light of the United States halting port fees on Chinese-built ships, Beijing has decided to suspend its sanctions against Hanwha’s US units for a period of one year, effective from November 10.
This move is seen as part of a broader effort to stabilize trade relations between the two economic powers, which have been embroiled in a tariff war for months. Hanwha also announced a $5 billion investment in Philly Shipyard in Philadelphia in August, signaling a continued commitment to its US operations despite the previous sanctions.
