China announced sanctions on U.S. subsidiaries of South Korea’s Hanwha helping the United States reinvigorate its shipbuilding industry.
The Commerce Ministry said the sanctions are in retaliation for a U.S. probe into trade practices that enabled it to unfairly build a dominant position in global shipping and shipbuilding.
The announcement comes on the same day the countries began assessing costly fees on the other’s ships.
Analyst Clarkson’s estimates China’s port fees could affect a total of 500 vessels worldwide, including 5% of container ships and 12%-13% of oil and liquefied natural gas tankers calling China ports.
China’s announcement also comes a day after U.S. investment bank JPMorgan (NYSE: JPM) said it would facilitate $1.5 trillion worth of investments over 10 years in critical American infrastructure, including shipbuilding.
The new sanctions forbid Chinese entities from doing business with five U.S. subsidiaries of Hanwha Ocean, including Hanwha LLC, Hanwha Yard Inc., Hanwha Ocean USA LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp.
The South Korean conglomerate (003530.KS) in August announced plans to spend $5 billion to upgrade its U.S. shipyard in Philadelphia, and placed orders for 10 oil and chemical tankers to be deployed in Jones Act service between American ports. Hanwha acquired the Philadelphia facility for $100 million in 2024.
In May the company said it was withdrawing from a joint venture in China.
President Donald Trump and Chinese leader Xi Jinping are scheduled to meet on the sidelines of a global trade summit later this month even as trade relations deteriorate. While the trade partners wait out a second pause on retaliatory tariffs that ends Nov. 10, China announced new restrictions on some minerals and Trump responded by threatening 100% tariffs as of Nov. 1.
China’s exports to the U.S. fell 27% in September, its customs agency reported, the sixth straight month of declines with its benchmark trading partner.
Find more articles by Stuart Chirls here.
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