China has announced the suspension of “special port fees” on US vessels for a period of one year, effective immediately. This move is in response to the US decision to pause levies targeting Chinese ships, as part of a fragile trade truce between the two superpowers. The suspension of port fees, which applied to ships operated by or built in the United States that visited Chinese ports, began at 13:01 local time on Monday.

The trade and tariff war between the US and China has been ongoing for months, with duties on both sides reaching triple-digit levels and hampering trade between the world’s two largest economies. However, after a meeting between Presidents Xi Jinping and Donald Trump last month in South Korea, both countries agreed to walk back some punitive measures.

The US shipbuilding industry, once dominant after the Second World War, has gradually declined and now accounts for just 0.1 percent of global output. The sector is currently dominated by Asia, with China building nearly half of all ships launched, ahead of South Korea and Japan.

In a separate move, Beijing has also suspended sanctions against US subsidiaries of Hanwha Ocean, one of South Korea’s largest shipbuilders. The year-long suspension, effective from November 10, is linked to the US halting port fees it had levied on Chinese-built and operated ships. China’s commerce ministry stated that the suspension of measures against Hanwha is a response to the US suspension, and that it has decided to suspend the relevant measures for one year.

The suspensions are the latest sign of a thaw in economic ties between the US and China. Earlier, China announced that it would extend the suspension of additional tariffs on US goods for one year, keeping them at 10 percent, and suspend some tariffs on soybeans and other US agricultural products. China also suspended an export ban on gallium, germanium, and antimony, metals crucial for modern technology.

The US, in turn, has agreed to suspend for one year export restrictions on affiliates of blacklisted foreign companies in which they have at least a 50 percent stake. The trade truce between the US and China is expected to have a positive impact on global trade and supply chains, which have been affected by the ongoing trade war. The next steps in the trade negotiations between the two countries will be closely watched by the international community.