China targets five U.S. subsidiaries of South Korea’s Hanwha Ocean, sending shares down 8%
The hull section to be shipped to the final assembly base is loaded onto a semi-submersible ship at Hanwha Marine Engineering (Shandong) Co LTD in Yantai, China, on September 16, 2024.
Cost photo | Nurfoto | Getty Images
China on Tuesday added five US subsidiaries of South Korean shipbuilder Hanwha Ocean to its sanctions list for their alleged involvement in Washington’s investigation into the Chinese shipping industry, escalating tensions between Beijing and Washington.
According to a statement from China’s Ministry of Commerce, the sanctioned subsidiaries include Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC and HS USA Holdings Corp.
The order, which takes effect immediately, will prohibit Chinese organizations and individuals from doing business with sanctioned companies, the statement said.
The move follows the United States’ decision to impose higher fees on Chinese ships docking at American ports starting at 12:01 a.m. EDT on Tuesday.
China retaliated by imposing a similar fee of 400 yuan ($56) on American ships starting the same day.
Beijing also announced a new framework to restrict rare earth exports and expanded its blacklist of US companies.
In response, US President Donald Trump threatened to impose 100% more tariffs on Chinese imports, prompting Beijing to tout rare earth restrictions as a “legitimate” measure.
Shares of Hanwha Ocean in Seoul fell more than 8% following the announcement.
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