China sanctions US-linked units of S.Korea shipbuilder Hanwha
China’s Commerce Ministry said Tuesday it was banning dealings by Chinese companies with five subsidiaries of South Korean shipbuilder Hanwha Ocean in the latest swipe by Beijing at U.S. President Donald Trump’s effort to rebuild the industry in America.
The ministry also announced that it was investigating a probe by Washington into China’s growing dominance in world shipbuilding and threatened more retaliatory measures. It said the U.S. probe endangers China’s national security and its shipping industry and cited Hanwha’s involvement in the investigation.
The U.S. Trade Representative launched the Section 301 trade investigation in April 2024. It determined that China’s strength in the industry was a burden to U.S. businesses, The Associated Press reported.
Hanwha Ocean’s shares traded in South Korea fell as much as over 8% on Tuesday. The company said via email that it was reviewing the situation.
The sanctioned entities are Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC and HS USA Holdings Corp.
South Korea and the U.S. have been building closer ties in shipbuilding in response to China’s dominance as the world’s largest shipbuilder, according to AP.
Last year, Hanwha Ocean secured contracts with the U.S. Navy to perform maintenance, repair and overhaul work for U.S. naval vessels.
These developments come as a truce in the trade war between the world’s two biggest economies appears to have unraveled after U.S. President Donald Trump threatened a new 100% tariff on imports from China, expressing frustration over new Chinese export controls on rare earths.
