BEIJING: China announced sanctions on Tuesday (Oct 14) against five United States-linked subsidiaries of South Korean shipbuilder Hanwha Ocean amid trade tensions between the world’s two largest economies, sending the company’s shares sharply lower.
The move, announced by the Chinese commerce ministry, comes on the day that China and the US implement additional port fees targeting each others’ vessels, although China has exempted ships it built.
Organisations and individuals within China are prohibited from engaging in any transactions, cooperation or related activities with these Hanwha entities, the ministry said in a statement.
“Hanwha Ocean’s US-related subsidiaries have assisted and supported the US government’s relevant investigative activities, thereby jeopardising China’s sovereignty, security, and developmental interests,” the statement said, without elaborating.
Hanwha did not immediately respond to a Reuters request for comment.
In August, Hanwha announced a US$5 billion additional investment on the Philly Shipyard, which it acquired in 2024 for US$100 million, after South Korea pledged to inject as much as US$150 billion to help the US revive its domestic industry.
President Donald Trump’s administration has said the US needs help from allies Japan and South Korea to revitalise the troubled shipbuilding sector, which is lagging behind China, especially for manufacturing warships.
https://www.channelnewsasia.com/east-asia/china-sanctions-us-linked-hanwha-units-south-korea-shipping-5400321
