China has decided to postpone sanctions for one year against five U.S. subsidiaries of Hanwha Group in the shipbuilding and shipping sectors, following a ceasefire agreement in the U.S.-China trade war.

The Chinese Ministry of Commerce announced on the 10th, “The U.S. suspended the implementation of Section 301 measures against Chinese maritime, logistics, and shipbuilding industries starting from the 10th,” adding, “Accordingly, sanctions against Hanwha Ocean’s U.S. subsidiaries will be postponed.”

The Chinese government had listed Hanwha Ocean’s subsidiaries on a sanctions list on the 14th of last month, citing their cooperation with a U.S. Trade Representative (USTR) investigation targeting China. It prohibited all cooperation and transactions with Chinese organizations and individuals. The sanctioned entities included Hanwha Philly Shipyard, a shipyard in Philadelphia, U.S., acquired by Hanwha Group last year, as well as Hanwha Shipping, Hanwha Ocean USA International, Hanwha Shipping Holdings, and HS USA Holdings.

At the time, the Chinese measures were interpreted as a response to intensified South Korea-U.S. cooperation centered on the ‘MASGA (Make American Shipbuilding Great Again)’ project aimed at restoring the U.S. shipbuilding industry. Ultimately, after U.S. President Donald Trump and Chinese President Xi Jinping agreed to refrain from escalating the trade war during their meeting in Busan on the 30th of last month, the sanctions began to be lifted. However, concerns remain that Hanwha Ocean could face Chinese sanctions again if the U.S. and China resume ‘tit-for-tat’ measures.

Starting today, the two countries have also partially postponed additional tariffs and trade retaliation measures in other sectors. The U.S. reduced the 20% tariff imposed on all Chinese goods over fentanyl precursor imports to 10%. Consequently, the average tariff rate on Chinese goods under the Trump administration decreased from 57% to 47%. China also halted additional tariffs on U.S. poultry, wheat, and corn starting today.
Source: The Chosun Daily