China, US suspend rival port fees in latest trade war thaw

China has suspended retaliatory port fees on US-linked vessels for one year, following Washington’s pause of similar charges under its “Section 301” investigation targeting the Chinese maritime sector.

After months of uncertainty over the rival port fees, which took effect on October 14, the shipping industry can finally breathe a sigh of relief as both sides formally confirmed the pause.

In line with the outcomes of the US-China trade talks in Kuala Lumpur, the Ministry of Transport said the State Council had approved a one-year halt to special port duties on US vessels, effective from 1.01pm Beijing time on Monday – mirroring Washington’s move.

Also on Monday, the Ministry of Commerce announced that sanctions against five US affiliates of South Korean shipbuilder Hanwha Ocean – also imposed on October 14 – would be suspended for one year. Beijing had accused the entities of cooperating with Washington in enforcing its curbs.

Following the Kuala Lumpur talks and the presidential meeting in South Korea in late October, the White House announced on November 1 that it would pause its port fees, effective Monday, as part of its trade truce with China.

The administration said it would continue negotiating with Beijing while maintaining its “historic” cooperation with South Korea and Japan to revitalise American shipbuilding.