China pauses sanctions on Hanwha Ocean after halting port fees on US vessels

BEIJING has announced a one-year suspension of its countermeasures against five US subsidiaries of South Korea’s Hanwha Ocean, expanding a wave of reciprocal trade easing that also includes a one-year suspension of special port service fees on US ships.

The Ministry of Commerce said the 12-month suspension, effective November 10, follows Washington’s decision to pause its Section 301 measures on China’s maritime and shipbuilding industries.

Hanwha Ocean was reported to welcome the decision and to expect continued cooperation with Chinese companies. Following the announcement, its shares rose 3% on the day of the announcement before declining the following day.

Industry analysts say the move could ease operational pressures on South Korea’s shipbuilding supply chain, which relies heavily on Chinese materials. According to the Korea Offshore & Shipbuilding Association, Chinese products account for around 20% of the entire steel plates used by South Korea’s top three shipbuilders: HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries and Hanwha Ocean.

The suspension came shortly after Beijing halted its port fees on US vessels, a step that mirrored Washington’s one-year waiver for China-linked ships. Analysts say the twin measures demonstrate limited, but tangible efforts to stabilise trade links after months of tension.

Earlier this year, before the recent trade measures, Clarksons Research data shows that China captured 56% of global shipbuilding orders between January and September 2025, while South Korea accounted for 22%. Given this market share, Shenwan Hongyuan Securities analyst Yan Kai said that with the continued exemption of China-built ships from port fees, newbuilding orders were likely to continue returning to Chinese yards.