News Brief
China Sanctions Five US Subsidiaries Of South Korean Shipbuilding Giant Hanwha Ocean Amid Escalating Trade War
Chinese flag over earth (Representative image)
China sanctioned five American subsidiaries of South Korean shipbuilding giant Hanwha Ocean on Tuesday (14 October), prohibiting Chinese organisations and individuals from conducting business with the firms.
The sanctioned entities include Hanwha Shipping LLC, Hanwha Philly Shipyard Inc, Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC and HS USA Holdings Corp. Beijing accused the subsidiaries of supporting a US government investigation into China's shipping industry.
The move came as both nations imposed new port fees on each other's vessels, which took effect on Tuesday.
China's Ministry of Transport separately launched an investigation into whether Washington's Section 301 probe impacts the security and development of China's shipbuilding industry and supply chain.
The ministry warned it would assess whether companies or individuals assisted the US investigation, raising the prospect of additional restrictions on American-linked firms.
Shares of Hanwha Ocean in Seoul plunged more than 8 per cent following the announcement before closing 5.8 per cent lower.
The South Korean government confirmed it was assessing the potential impact on Hanwha and related industrial sectors.
China accounts for more than half of all new shipbuilding globally, with South Korea representing approximately 30 per cent and Japan just over a tenth of the total.
The firm also secured contracts with the US Navy last year for maintenance and overhaul work on naval vessels.
The US Trade Representative launched its Section 301 investigation in April 2024, determining that China's strength in the industry burdens American businesses.
The sanctions intensified already strained relations between Washington and Beijing, with President Donald Trump recently threatening a 100 per cent tariff on Chinese imports over rare earth export controls.
Both countries held working-level talks on Monday and maintained communication, despite doubts over whether Trump and Chinese leader Xi Jinping would proceed with a meeting planned for late this month.
The maritime sector has emerged as a new battleground in the ongoing trade war between the world's two largest economies.
