Hanwha Ocean's U.S. Subsidiaries Granted Sanctions Deferment After One Month... "Hope for Stronger Ties with Chinese Partners"

Sanctions Deferred as a Follow-Up Measure to the U.S.-China Summit

Due to the impact of the United States' port tariffs targeting China, five U.S. subsidiaries of Hanwha Ocean, which had been placed on a sanctions list, have now been granted a one-year deferment. Hanwha Ocean issued a statement saying, "We welcome the decision by the Chinese government."

On November 10, Hanwha Ocean responded to the Chinese Ministry of Commerce's announcement that sanctions against its five U.S. subsidiaries would be deferred for one year by stating, "We hope that this deferment will further develop our relationships with our Chinese business partners." This action by China is part of the follow-up economic measures after the U.S.-China summit, following the United States' decision to postpone for one year its sanctions against China's shipping and shipbuilding industries under Section 301 of the Trade Act.

Hanwha Philly Shipyard located in Philadelphia, Pennsylvania, USA. Yonhap News Agency

On November 10, the Chinese Ministry of Commerce announced on its website, "The United States has deferred Section 301 measures related to the maritime, logistics, and shipbuilding industries for one year starting today," adding, "In consideration of this, we will also defer sanctions against Hanwha Ocean's five U.S. subsidiaries for one year." The deferment takes effect immediately.

The subsidiaries subject to the deferment are Hanwha Philly Shipyard, Hanwha Shipping, Hanwha Shipping Holdings, Hanwha Ocean USA International, and HS USA Holdings. These companies were added to the Chinese Ministry of Commerce's "retaliatory sanctions" list on October 14, immediately following the U.S. announcement of a "port fee" targeting China, sparking controversy. At that time, the United States Trade Representative (USTR) announced a new system imposing a $50 port entry fee per ton on Chinese-built ships entering U.S. ports.

The shipbuilding industry had expressed concerns that China's sanctions against Hanwha Ocean's U.S. subsidiaries, used as a countermeasure against the United States, could damage trust if prolonged. Hanwha Ocean, which had become a target due to its close ties with the United States amid U.S.-China tensions, has gained some breathing room with this deferment measure.

This content was produced with the assistance of AI translation services.