China imposes sanctions on five US-based Hanwha Ocean companies.

The trade war between China and America

China imposes sanctions on five US-based Hanwha Ocean companies.

China's Ministry of Commerce announced on Tuesday a ban on Chinese companies' dealings with five American subsidiaries of South Korean shipbuilder Hanwha Ocean.

The ministry said it is also investigating a Washington-led probe into China's growing dominance of the global shipbuilding industry .

The ministry added that the US investigation poses a threat to China's national security and the country's shipping industry, noting that Hanwha Ocean is involved in the investigation.

In April 2024, the Office of the US Trade Representative initiated an investigation under Section 301 of the US Trade Act.

The investigation concluded that China's dominance in this industry constitutes a burden on American companies .

The sanctioned entities include Hanwha Shipping Co., Ltd. , Hanwha Veli Shipbuilding Co., Ltd., Hanwha Ocean USA International Co., Ltd., Hanwha Shipping Holdings Co., Ltd., and HSUSA Holdings Co., Ltd.

The international shipping and shipbuilding industry has recently become a focus of trade disputes between Washington and Beijing , with each side imposing new port fees on the other's vessels.

In late 2024, Hanwha Ocean acquired the Philly Shipyard in Pennsylvania for $100 million.

Last August, the company announced its intention to invest $5 billion in building new docks and docks as part of its support for US efforts to restore global competitiveness in shipbuilding.

Hanwha Ocean also signed an agreement with the U.S. Navy to conduct ship repairs.

China announced that the new port tariffs will apply to vessels owned by US companies, other entities, or individuals; vessels operated by US entities, including those in which the US holds a 25 percent or greater stake; vessels flying the US flag; and vessels manufactured in the US.

US companies represent only 2.9 percent of the global fleet by capacity and 0.1 percent of global shipbuilding capacity.

US President Donald Trump has pledged to help rebuild the shipbuilding industry as part of his broader efforts to expand manufacturing within the United States.