China suspends port fees on US vessels as trade truce deepens

China has announced the suspension of ‘special port fees’ on United States vessels for one year, mirroring Washington’s recent decision to pause similar levies on Chinese ships, a move signaling further easing of tensions in the ongoing trade dispute between the two global powers.

In a statement issued on Monday, China’s Ministry of Transport said the suspension took effect at 13:01 (05:01 GMT) and would apply to all vessels operated by or built in the United States that dock at Chinese ports.

The ministry described the measure as a reciprocal step aimed at fostering ‘mutual understanding and stability’ in trade relations.

The announcement follows a recent meeting between Presidents Xi Jinping and Donald Trump in South Korea, during which both sides agreed to scale back punitive tariffs that had reached unprecedented triple-digit levels.

The months-long tariff war had disrupted trade flows between the world’s two largest economies and caused significant strain on global supply chains.

Once dominant after World War II, the US shipbuilding industry now accounts for only about 0.1 percent of global production. The market is currently led by Asian nations, with China producing nearly half of the world’s new ships, followed by South Korea and Japan.

In a related development, Beijing also declared a one-year suspension of sanctions imposed on five US subsidiaries of Hanwha Ocean, one of South Korea’s leading shipbuilders.

The Chinese Ministry of Commerce said the decision was directly linked to Washington’s decision to halt its own port fees on Chinese-built and operated ships.

“In light of the United States’ suspension of relevant measures, China has decided to suspend the corresponding sanctions for one year,” the ministry stated.

The affected subsidiaries; Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp., had previously been blacklisted in October for allegedly supporting a US government “Section 301” investigation, which accused China of unfairly dominating the global shipbuilding sector.

As part of the suspension, a planned Chinese investigation into the potential impact of the Section 301 probe on the country’s shipbuilding industry and supply chain has also been placed on hold for one year.

The latest measures mark a notable improvement in China-US economic relations since the Xi-Trump talks.

Just last week, China extended its suspension of additional tariffs on US goods, keeping them at 10 percent, while also maintaining a temporary freeze on tariffs affecting American soybeans and agricultural exports.

Beijing lifted export bans on key industrial metals such as gallium, germanium, and antimony, elements critical to modern electronics and defence technologies.

The government also paused for one year restrictions on rare earth technology exports.

In a reciprocal gesture, Washington agreed to suspend for one year export restrictions on affiliates of blacklisted foreign companies where US entities hold at least a 50 percent stake, according to the Chinese commerce ministry.