China has imposed sanctions on five U.S.-based subsidiaries of South Korean shipbuilder Hanwha Ocean, heightening tensions over Washington’s investigation into Beijing’s increasing dominance in the global shipbuilding industry.
On Tuesday, the Chinese Ministry of Commerce announced that Chinese companies are now prohibited 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 revealed that it has launched its own investigation into the U.S. probe, which it claims threatens China’s national security and maritime industry. Beijing accused Washington of using trade measures to undermine China’s position in the global shipbuilding sector.
The US Trade Representative initiated a Section 301 trade investigation in April 2024, concluding that China’s dominance in the industry was disadvantaging American shipbuilders.
Maritime trade has emerged as a new front in US-China relations, with both sides implementing new port fees on each other’s vessels starting Tuesday.
Hanwha Ocean, one of South Korea’s prominent shipbuilders, has been expanding its presence in the U.S. market.
Last year, the company acquired Philly Shipyard in Pennsylvania for $100 million and unveiled a $5 billion investment plan in August to build new docks and quays to support U.S. efforts to revive domestic shipbuilding.
In its announcement, Beijing stated that the new Chinese port fees will apply to ships owned or operated by U.S. companies or individuals, vessels with a 25 percent or higher US ownership stake, ships flying the US flag, and those built in the United States.
