As part of the trade deal reached at the U.S.-China summit, the likelihood has grown that China will lift sanctions imposed on Hanwha Ocean's U.S. subsidiaries.
According to the fact sheet on the U.S.-China leaders' trade agreement released by the White House on the 1st (local time), China will roll back measures it implemented in retaliation for the United States' Section 301 investigation into China's maritime, logistics, and shipbuilding industries and will also lift sanctions imposed on various shipping corporations.
Earlier, on the 14th, China placed five U.S. subsidiaries of Hanwha Ocean on a sanctions list that bans transactions with Chinese corporations, citing cooperation with the Office of the United States Trade Representative (USTR)'s Section 301 investigation. Hanwha Philly Shipyard Inc., Hanwha Shipping LLC, Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp. are subject to sanctions.
Afterward, USTR chief Jamieson Greer criticized China's sanctions as "economic coercion" and "retaliation" aimed at preventing foreign corporations from investing in the U.S. shipbuilding industry.
However, the U.S.-China summit eased tensions between the two countries. Under the leaders' trade agreement, the United States will suspend for one year, starting on the 10th, measures implemented targeting China's maritime, logistics, and shipbuilding industries based on the Section 301 investigation. The fact sheet did not specify which measures would be suspended.
The White House said the United States plans to negotiate with China under Section 301 while continuing historic cooperation with South Korea and Japan to rebuild the U.S. shipbuilding industry.