A Chinese shipyard. AFP/Yonhap News. 

The U.S. government has officially announced a one-year suspension of measures targeting China's shipbuilding and maritime industries, such as port entry fees for Chinese-made vessels.

The suspension follows the recent summit agreement between U.S. President Donald Trump and Chinese President Xi Jinping, with the Office of the U.S. Trade Representative (USTR) detailing the specifics on December 6 (local time).

Previously, the USTR had been investigating, under Section 301 of the Trade Act, its belief that China was strengthening its dominance in the maritime, logistics, and shipbuilding industries through unfair policies and practices.

As a result, starting on November 14, port entry fees began to be imposed on vessels operated or owned by Chinese companies, or built in China.

Port entry fees were also imposed on car carriers built in foreign countries, and a 100% additional tariff was levied on certain Chinese cargo handling equipment, such as Chinese-made STS (Ship To Shore) cranes.

These measures were predicted to benefit South Korean shipbuilders, as they would prompt global shipping companies to halt orders to Chinese shipyards, which they had chosen due to price competitiveness.

However, China did not remain idle and implemented retaliatory measures in response to the U.S. Section 301 investigation, including sanctioning five U.S. subsidiaries of Hanwha Ocean.

During their meeting on November 30, Presidents Trump and Xi agreed to mutually suspend measures targeting each other's shipbuilding and maritime industries.

The USTR stated that in accordance with the U.S.-China summit agreement, the implementation of Section 301 measures will be suspended from December 10 to November 9 of next year, during which time port entry fees or tariffs will not be required.

"The United States will negotiate with China under Section 301 regarding the issues raised in this investigation," the USTR said. "While taking these actions, the U.S. will continue its domestic efforts to rebuild American shipbuilding and engage in dialogue with key allies and partners."

Yonhap News