Shares of South Korea’s Hanwha Ocean tumbled over 8% on Tuesday following Beijing’s decision to penalize five of its U.S.-based subsidiaries, escalating hostilities between China and the United States related to a probe targeting the Chinese shipping sector.
China’s Ministry of Commerce announced sanctions against Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp. The ministry specified that the action would take immediate effect, barring Chinese individuals and entities from conducting any transactions with these firms.
A spokesperson for the Commerce Ministry stated, as translated by CNBC, that Hanwha’s subsidiaries in the U.S. have aided the American authorities in investigations and actions directed at China’s maritime, logistics, and shipbuilding industries. China expresses strong dissatisfaction and adamant opposition.
Beijing’s latest measures appear in direct retaliation to recent sanctions from Washington. Earlier on Tuesday, Chinese authorities confirmed the commencement of additional port fees on vessels associated with the United States, while specifying exemptions for ships constructed in China. This came after the United States, under President Donald Trump, implemented significant new levies on Chinese ships arriving at American ports.
Mirroring the American move, China imposed a fee of CNY 400 (USD 56) per net ton on U.S. ships as of the same day. Large container ships that fall within the range of 50,000 to 220,000 tons will be subject to these new charges.
Amid the escalating trade dispute, Beijing has also unveiled updated restrictions on the export of rare earth materials and significantly broadened its list of blacklisted U.S. companies. In response, President Trump has threatened to double tariffs on additional imports from China, while Beijing has characterized its rare earth measures as “legitimate.”
Separately, China’s Ministry of Transport announced it has begun probing the effects of Washington’s Section 301 investigation on the Chinese shipping and shipbuilding sectors. The investigation will examine, according to the ministry, whether any entities or individuals played a role in “undertaking discriminatory restrictive behaviours” that affected the nation’s maritime supply chain.
