China has imposed sanctions on five U.S.-based subsidiaries of South Korean shipbuilder Hanwha Ocean, escalating tensions over Washington’s investigation into Beijing’s growing dominance in global shipbuilding.
The Chinese Ministry of Commerce announced on Tuesday that all Chinese companies are now barred from conducting business with the sanctioned entities — Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp.
The ministry also said it has launched its own investigation into the U.S. probe, calling it a threat to China’s national security and maritime industry. It accused Washington of using trade measures to undermine China’s position in the global shipbuilding sector.
The U.S. Trade Representative initiated the Section 301 trade investigation in April 2024, concluding that China’s dominance in the industry was putting American shipbuilders at a disadvantage.
Maritime trade has become a fresh battleground in U.S.-China relations, with both sides introducing new port fees on each other’s vessels effective Tuesday.
Hanwha Ocean, one of South Korea’s leading shipbuilders, has been expanding its footprint in the U.S. market. The company acquired Philly Shipyard in Pennsylvania late last year for $100 million and announced a $5 billion investment plan in August to build new docks and quays in support of U.S. efforts to revive domestic shipbuilding.
In its announcement, Beijing said the new Chinese port fees will apply to ships owned or operated by U.S. companies or individuals, those with a 25% or higher U.S. ownership stake, vessels flying the U.S. flag, and those built in the United States.
