In a move signaling easing trade tensions, Beijing has announced a one-year suspension of countermeasures against five US subsidiaries of South Korea’s Hanwha Ocean. The decision aligns with Washington’s temporary halt on its Section 301 measures targeting China’s maritime and shipbuilding industries and comes alongside a similar suspension of special port service fees on US ships.
Strengthening Maritime and Trade Cooperation
The Ministry of Commerce stated that the suspension, effective November 10, reflects a reciprocal gesture following the US’s decision to pause its tariffs on China’s shipbuilding sector. Hanwha Ocean welcomed the move, expressing optimism about continued cooperation with Chinese firms. The company’s shares rose by 3% immediately after the announcement before easing the following day.
Industry experts note that the decision could relieve some of the operational pressure faced by South Korea’s shipbuilders, whose supply chains rely heavily on Chinese raw materials. According to the Korea Offshore & Shipbuilding Association, Chinese products make up about 20% of the steel plates used by South Korea’s major shipbuilders HD Korea Shipbuilding & Offshore Engineering, Samsung Heavy Industries, and Hanwha Ocean.
A Step Toward Stabilising Global Shipbuilding Trade
This decision follows Beijing’s earlier suspension of port service fees on US vessels, mirroring Washington’s one-year waiver for China-linked ships. Analysts view these twin actions as part of a broader, albeit cautious, attempt to stabilise maritime trade ties between the world’s largest economies.
Clarksons Research data shows that China maintained its dominance in the global shipbuilding market from January to September 2025, securing 56% of total orders, compared with South Korea’s 22%. Analysts, including Yan Kai of Shenwan Hongyuan Securities, suggest that with the continuation of fee exemptions for China-built vessels, newbuilding orders are likely to remain concentrated in Chinese shipyards.
Beijing’s latest trade relaxation marks a modest yet meaningful effort toward easing international maritime tensions and supporting smoother global supply chains. While the suspension is temporary, it underscores the growing interdependence among major shipbuilding nations and may pave the way for more stable and cooperative trade relations in the year ahead.
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Source: Lloyd’s List
