China suspends port fees, signals warming trade ties with US

November 10, 2025 (MLN): China said on Monday it would suspend for one year the “special port fees” applied to US-operated and US-built vessels, moving in step with Washington’s decision to pause levies targeting Chinese ships. The move signals a further easing of tensions in the prolonged trade standoff between the two largest economies.

The suspension took effect at 13:01 local time (0501 GMT) and applies to all US vessels calling at Chinese ports, according to a statement from the transport ministry. The measure mirrors the United States’ recent suspension of port charges on Chinese ships, showing a cautious effort by both sides to rebuild stability after months of tariff escalation.

The United States and China had been locked in a volatile tariff war, which saw duties on both sides soar to triple-digit levels. These measures disrupted trade flows and snarled global supply chains.

A breakthrough came last month when Presidents Xi Jinping and Donald Trump met in South Korea and agreed to ease some of the most restrictive trade barriers.

Beijing said the one-year suspension of its port fees comes “simultaneously” with Washington’s move. The commerce ministry noted that the decision aligns with the broader understanding reached between the two governments to gradually roll back punitive measures while maintaining dialogue.

Separately, China said it would also suspend sanctions for one year on five US subsidiaries of Hanwha Ocean, one of South Korea’s largest shipbuilders. The sanctions, imposed in October, accused the companies of supporting a US “Section 301” investigation that deemed China’s dominance in the shipbuilding industry as “unreasonable.”

The affected subsidiaries Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp will now be allowed to resume normal cooperation with Chinese partners during the suspension period.

A planned investigation into whether the Section 301 probe threatened China’s shipbuilding security and development interests has also been placed on hold for one year.

The US shipbuilding industry, once a global powerhouse after World War II, has steadily declined and now represents only 0.1 percent of global output. In contrast, Asia dominates the sector, with China accounting for nearly half of all ships built worldwide, followed by South Korea and Japan.

The reciprocal suspension of fees and sanctions reflects a tentative but positive step in the evolving trade relationship. While both sides continue to face deep-rooted differences on industrial and maritime policy, the latest actions suggest a willingness to prevent further escalation and to stabilize global trade dynamics.

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