According to Reuters, on October 17, the U.S. State Department spokesperson spoke in support of the Chinese sanctions imposed on a U.S. subsidiary of Hanwha Ocean, a South Korean company, stating that the action aimed to disrupt U.S.-South Korea cooperation and was an "intimidation" of the United States' Asian allies.

On October 14, the Chinese Ministry of Commerce announced sanctions against five U.S. subsidiaries of Hanwha Ocean Co., Ltd. of South Korea, prohibiting organizations and individuals within China from conducting transactions or collaborations with them, as they assisted the U.S. in its Section 301 investigation into China's maritime, logistics, and shipbuilding industries, thereby harming Chinese interests.

Ministry of Commerce website

Among the five companies sanctioned, there is Philly Shipyard, a shipyard located in the United States. This shipyard belongs to Hanwha Group and is a key asset in its U.S. layout. Hanwha had previously acquired the plant and planned to further invest and expand it. In addition, it has received maintenance and refit contracts from the U.S. Navy, making it a central player in the U.S.-South Korea shipbuilding cooperation plan.

Philly Shipyard, Reuters

Previously, as part of the South Korea-U.S. trade negotiations, South Korea had committed to investing up to $150 billion to help revitalize the struggling U.S. shipbuilding industry. This investment also aims to encourage the U.S. to reduce tariffs on South Korean imported goods.

At the time of the sanctions, the U.S.-China trade war saw a new round of confrontation, with both sides engaging in fierce battles over port fees. On October 14, the U.S. first imposed high port fees on Chinese vessels, and China immediately announced equivalent countermeasures.

Due to the sanction news, Hanwha Ocean's stock price on the Seoul Stock Exchange fell sharply, closing down about 5.8%, and falling more than 9% at one point, resulting in a loss of approximately 630 billion won (about 470 million U.S. dollars) in market value for the day.

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