Trade minister raises concerns over China’s Hanwha sanctions in high-level talks

Trade Minister Yeo Han-koo held talks with his Chinese counterpart Wednesday and conveyed concerns over Beijing’s recent sanctions against five U.S.-based subsidiaries of Korean shipbuilder Hanwha Ocean, Yeo’s office said.

Yeo also called for a swift lifting of the sanctions in a video conference with China’s top trade negotiator Li Chenggang, while also expressing concerns over Beijing’s recent decision to put export restrictions on five additional rare earth elements, according to the Ministry of Trade, Industry and Resources.

Last week, the Chinese government announced it would impose retaliatory measures against Hanwha Ocean’s five subsidiaries in the United States, accusing them of cooperating with a U.S. investigation targeting Beijing’s maritime and shipbuilding industries.

The move raised concerns as the affected companies are expected to play a key role in Seoul’s plan to help the U.S. rebuild its shipbuilding industry under a framework tariff agreement reached between the two countries in late July.

On July 30, the Donald Trump administration agreed to lower its reciprocal tariff rate for Korea to 15 percent from 25 percent in return for Seoul’s pledge to invest $350 billion in the U.S for cooperation in shipbuilding, semiconductor and other key industries.

The ministry said Seoul and Beijing plan to hold a trade ministers’ meeting on the sidelines of the upcoming Asia-Pacific Economic Cooperation (APEC) summit, set to take place in the southeastern city of Gyeongju, North Gyeongsang Province, from Oct. 31-Nov. 1, to continue discussions on the pending issues.