SEOUL, October 14 (AJP) - The Chinese government said on Tuesday it had imposed sanctions on five U.S.-based subsidiaries of Hanwha Ocean, a South Korean shipbuilding company, in retaliation for a U.S. investigation into China’s maritime and shipbuilding industries.
The Chinese Ministry of Commerce said the move was a direct response to Washington’s Section 301 investigation, which Beijing described as “a violation of international economic and trade rules” that undermines the rights of Chinese companies.
The sanctions target Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings. The companies are now barred from conducting business or entering into joint ventures with Chinese firms, according to the ministry.
Beijing accused the subsidiaries of “supporting and facilitating” U.S. policies that it said threaten China’s sovereignty and national security.
Shares of Hanwha Ocean fell 5.76 percent at 103,100 won, Tuesday. Earlier in the session, it dropped as much as 9,600 won to 99,600 won after China announced sanctions against the firm.
The announcement adds to escalating maritime trade tensions between the world’s two largest economies. In April, the U.S. Trade Representative imposed new port service fees on Chinese vessels, a move China has since mirrored by applying similar charges on U.S.-flagged ships.
Hanwha Ocean, one of South Korea’s leading defense contractors, did not immediately comment on the impact of the sanctions on its operations.
The company, formerly known as Daewoo Shipbuilding & Marine Engineering, has expanded its U.S. footprint in recent years through investments in shipyards and logistics subsidiaries.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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