China extends sanctions reprieve for five Hanwha Ocean U.S. subsidiaries by two months

[Financial News] The Chinese government has decided to suspend sanctions on five U.S. subsidiaries of Hanwha Ocean for an additional two months. The decision, made one day before the existing suspension period was set to expire, is expected to ease uncertainty surrounding Hanwha Ocean’s U.S. shipbuilding business for now.
On the 9th, China’s Ministry of Commerce promulgated Order No. 4 of 2026, which states that “the implementation of sanctions measures against five U.S.-related subsidiaries of Hanwha Ocean Co., Ltd. will continue to be suspended for two months.” The measure takes effect on the 10th. The ministry said the suspension was “intended to implement the agreement reached in economic and trade negotiations between China and the United States.”
In October last year, China’s Ministry of Commerce placed five U.S. subsidiaries of Hanwha Ocean on its sanctions list for cooperating with U.S. sanctions related to China’s shipbuilding and shipping industries. As a result, companies and individuals in China were barred from doing business or cooperating with those subsidiaries. However, as progress was made toward an agreement in U.S.-China trade negotiations, China had suspended enforcement of the sanctions for one year starting November 10 last year.
With the existing suspension period set to expire on the 10th of this month, concerns had emerged in the industry that the sanctions could resume. But now that the Chinese government has officially decided on an additional suspension, Hanwha Ocean’s U.S. subsidiaries are expected to face less uncertainty in their local operations for the time being.
However, this measure does not fully withdraw the sanctions; it only temporarily suspends their implementation. When the additional suspension period ends next January, whether to resume or extend the sanctions is expected to become an issue again, depending on the state of U.S.-China trade negotiations.
[email protected] Jung Won-il Reporter