Seoul: 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 South Korean shipbuilder Hanwha Ocean Co., Yeo's office said.
According to Yonhap News Agency, Yeo also called for a swift lifting of the sanctions in a video conference with China's top trade negotiator Li Chenggang. He expressed concerns over Beijing's recent decision to put export restrictions on five additional rare earth elements, as reported by 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. The sanctions were in response to accusations of these subsidiaries cooperating with a U.S. investigation targeting Beijing's maritime and shipbuilding industries.
The move has raised concerns as the affected companies are expected to play a key role in Seoul's plan to assist the U.S. in rebuilding its shipbuilding industry. This plan is part of a framework tariff agreement reached between the two countries in late July.
On July 30, the Donald Trump administration agreed to reduce its reciprocal tariff rate for South Korea to 15 percent from 25 percent. This reduction came in exchange for Seoul's pledge to invest US$350 billion in the U.S for cooperation in shipbuilding, semiconductor, and other key industries.
The ministry indicated that Seoul and Beijing plan to hold a trade ministers' meeting on the sidelines of the upcoming Asia-Pacific Economic Cooperation (APEC) summit. The summit is set to take place in the southeastern city of Gyeongju from Oct. 31-Nov. 1, where further discussions on the pending issues are expected.