China has postponed for one year the sanctions imposed on five U.S. subsidiaries of South Korea’s Hanwha Group operating in shipbuilding and shipping, following the recent ceasefire in the U.S.-China trade war.
The Chinese Ministry of Commerce announced on the 10th that the United States “has suspended for one year the application of Section 301 measures against China’s maritime, logistics, and shipbuilding industries.” The ministry added that “sanctions against Hanwha Ocean’s U.S. subsidiaries will accordingly be postponed.”
On the 14th of last month, China placed Hanwha Ocean’s American subsidiaries on its sanctions list, citing their cooperation with an investigation led by the U.S. Trade Representative (USTR) targeting China. The sanctions prohibited all forms of transactions and collaboration with Chinese individuals and entities. The affected companies included Hanwha Philly Shipyard—acquired by Hanwha Group in Philadelphia last year—along with Hanwha Shipping, Hanwha Ocean USA International, Hanwha Shipping Holdings, and HS USA Holdings.
At the time, the sanctions were viewed as a countermeasure against intensified cooperation between South Korea and the United States under the “MASGA (Making American Shipbuilding Great Again)” initiative, which seeks to revitalize the U.S. shipbuilding sector. The sanctions were withdrawn after U.S. President Donald Trump and Chinese President Xi Jinping agreed in Busan on the 30th of last month to prevent further escalation of the trade war.
However, uncertainty remains over whether Hanwha Ocean could face renewed restrictions if tensions between Washington and Beijing reignite.
Starting today, both nations have also postponed certain additional tariffs and retaliatory measures in other areas. The United States has reduced the 20% tariff on Chinese imports related to fentanyl precursor materials to 10%, lowering the overall average tariff rate on Chinese goods from 57% to 47% under the Trump administration. In response, China suspended additional tariffs on U.S. poultry, wheat, and corn starting today.
