China Suspends Port Fees on US Ships Amid Signs of Trade Truce

China announced on Monday the suspension of “special port fees” on US vessels for one year, mirroring Washington’s decision to pause levies targeting Chinese ships. The move marks a cautious step toward easing tensions in the ongoing trade dispute between the world’s two largest economies.

According to a statement from China’s Ministry of Transport, the suspension took effect at 13:01 Beijing time (0501 GMT) and applies to all ships built or operated by US entities visiting Chinese ports.

The reciprocal measures come after Chinese President Xi Jinping and former US President Donald Trump met last month in South Korea, where both sides agreed to de-escalate aspects of their prolonged tariff and trade conflict. The dispute had previously seen triple-digit duties imposed by both nations, severely disrupting global supply chains.

China’s shipbuilding sector now leads the world, producing nearly half of all newly launched vessels, while the US shipbuilding industry — once dominant after World War II — has dwindled to just 0.1 percent of global output.

In a related announcement, Beijing said it would also suspend sanctions on five US subsidiaries of South Korean shipbuilder Hanwha Ocean for one year, effective November 10. The decision followed Washington’s halt of port fees imposed on Chinese-built and operated ships, according to China’s Ministry of Commerce.

“In light of the US suspension, China has decided to suspend the relevant measures for one year,” the ministry said.

China had previously sanctioned the Hanwha subsidiaries in October, accusing them of supporting a US “Section 301” investigation that claimed Beijing’s dominance in the shipbuilding industry was unfair. The sanctions had barred Chinese entities and individuals from engaging with Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp.

Additionally, a planned Chinese probe into the impact of the US investigation on China’s shipbuilding security and supply chain development has been shelved for one year, signaling a temporary easing of hostilities as both sides explore a fragile truce.