China has suspended sanctions on Hanwha Ocean’s five U.S. subsidiaries for one year.

The Ministry of Commerce in Beijing announced Monday that restrictions banning organizations and individuals in China from cooperating with Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC and HS USA Holdings Corp. would be suspended for the next 12 months. 

In particular, Hanwha Philly Shipyard is a key symbol of South Korea-U.S. shipbuilding cooperation.

The ministry said the decision was a follow-up to the agreement reached by the leaders of the U.S. and China during their summit in Busan last month and aimed to avoid further escalation of the trade conflict.

In line with the agreement, the U.S. will suspend control measures targeting China's shipping, logistics and shipbuilding industries for one year.