China has recently made a notable announcement regarding its trade relations with the United States, indicating plans to suspend “special port fees” on US vessels for a year. This decision is part of a broader strategy aimed at sustaining a fragile trade truce between the two economic powers, coinciding with the US decision to pause tariffs on Chinese ships.

The trade relationship between the United States and China has historically been marked by fluctuations, with a series of escalating tariffs and punitive measures affecting both nations. Recent diplomatic interactions, including a meeting between Presidents Xi Jinping and Donald Trump, have contributed to the possibility of improved relations. This meeting took place last month in South Korea, where both leaders discussed methods to de-escalate the ongoing trade conflict.

During the peak of the trade war, tariffs imposed by both countries reached substantial levels, with some duties exceeding 100%. This escalation not only hindered bilateral trade but also disrupted global supply chains, impacting economies around the world. The suspension of port fees, aimed specifically at vessels operated by or constructed in the United States visiting Chinese ports, took effect at 13:01 local time, as confirmed by a statement from China’s transport ministry.

The US shipbuilding industry, which was a prominent player in the global market following World War II, has experienced a significant decline over the years. It currently represents a mere 0.1 percent of global shipbuilding output, with Asia,particularly China,dominating the industry. China is responsible for nearly half of all ships launched globally, with South Korea and Japan following behind.

In a related development, China has chosen to suspend sanctions against US subsidiaries of Hanwha Ocean, a major South Korean shipbuilder. This suspension, effective from November 10, is directly linked to the US halting its port fees on Chinese-built and operated vessels. The Chinese commerce ministry stated that “in light of this (US suspension)… China has decided to suspend the relevant measures” for one year.

Previously, in October, China had imposed sanctions on five US subsidiaries of Hanwha, alleging their involvement in a US government investigation that criticized Beijing’s dominance in the shipbuilding sector. Consequently, organizations and individuals in China were restricted from collaborating with Hanwha Shipping LLC and its related entities.

Furthermore, a planned inquiry into the impact of the US Section 301 investigation on the “security and development interests” of China’s shipbuilding industry has also been postponed for one year, according to the transport ministry.

These recent suspensions may signal a thaw in economic relations following the Xi-Trump meeting. Additionally, China has announced an extension of the suspension of supplementary tariffs on US goods for another year, maintaining them at 10 percent and also suspending tariffs on specific agricultural products, including soybeans.

Moreover, China has lifted an export ban on critical metals such as gallium, germanium, and antimony, essential for modern technology. After negotiations, Beijing has also agreed to suspend restrictions on the export of rare earth technology for one year.

In response, the United States has agreed to suspend export restrictions for one year on affiliates of foreign companies that have been blacklisted, provided that the US entities maintain at least a 50 percent stake in those companies, as noted by the Chinese commerce ministry.

This series of reciprocal measures reflects a cautious optimism in the ongoing trade negotiations between the two nations, as both sides aim to stabilize their economic relationship and mitigate the impacts of prior tariffs and sanctions.